As of March 28, 2025, U.S. consumer confidence has experienced a significant decline, reflecting growing economic concerns among Americans. The Conference Board reported that its Consumer Confidence Index fell by 7.2 points in March to 92.9, marking the fourth consecutive monthly decrease and reaching its lowest level since January 2021. UPI+5Al Jazeera+5U.S. News+5
This downturn is largely attributed to escalating anxieties over tariffs and inflation. The Expectations Index, which gauges consumers’ short-term outlook for income, business, and labor market conditions, dropped 9.6 points to 65.2—the lowest in 12 years and well below the threshold of 80 that typically signals a looming recession. WSJ+4U.S. News+4AP News+4U.S. News+5The Conference Board+5PR Newswire+5
The University of Michigan’s Consumer Sentiment Index corroborates this trend, recording a decline to 57.0 in March, the lowest since July 2022. Two-thirds of consumers now anticipate higher unemployment in the coming year, the highest proportion since 2009. Politico+7The Guardian+7CBS News+7WSJ
These declining confidence levels have tangible implications for consumer behavior. Major retailers, including Walmart, Target, and Macy’s, have expressed concerns and adjusted their profit forecasts in response to economic uncertainties and the impact of tariffs. While there has been an uptick in intentions to purchase high-ticket items—possibly as consumers aim to preempt tariff-induced price increases—overall spending intentions for homes and cars have diminished. WSJAP News
Amid these economic challenges, financial stress among American workers remains pronounced. Surveys indicate that employees are increasingly concerned about their financial well-being, which can adversely affect productivity, job satisfaction, and overall health.
In light of these concerns, employers have a pivotal role in supporting their workforce’s financial wellness. Implementing comprehensive employee assistance programs (EAPs) can provide invaluable resources to address financial stress. EAPs offer services such as financial counseling, debt management assistance, and educational workshops on budgeting and savings strategies. By proactively addressing financial stress, employers can enhance employee well-being, boost morale, and improve overall productivity.
The current economic climate underscores the importance of employer-supported financial wellness initiatives. By providing resources and support to help employees navigate financial challenges, companies can foster a more resilient and engaged workforce, ultimately contributing to both individual and organizational success. Employers have an opportunity to step up with meaningful, cost-effective support. A Purchasing Assistance Program gives employees a smarter way to make essential purchases—without relying on high-interest credit cards or payday loans. It allows employees to spread out payments over time with no credit checks, helping them manage cash flow and reduce financial anxiety.
Best of all? The program is completely free for employers to offer, making it a no-brainer addition to your voluntary benefits package. In today’s uncertain economy, giving employees access to financial breathing room isn’t just compassionate—it’s strategic. Reach out to us today to schedule a quick 30 minute virtual meeting to learn more about this free benefit you can offer your employees today!
- Fortune – “U.S. consumer confidence plunges to lowest level since 2021 as inflation, recession fears grow”
https://fortune.com/2025/03/25/economy-consumer-confidence-recession-fears-trump-tariffs-spending - S. News & World Report – “US Consumer Confidence Tumbles for the 4th Consecutive Month to a 12-Year Low” https://www.usnews.com/news/business/articles/2025-03-25/us-consumer-confidence-tumbles-for-the-4th-consecutive-month-to-a-12-year-low
- Mercer – “Financial concerns remain top of mind for American workers”
https://www.mercer.com/en-us/insights/retirement/defined-contribution-plans/financial-concerns-remain-top-of-mind-for-american-workers