- Consumer confidence drops for third straight month, hitting lowest level since December 2023
- S&P 500 Index enters correction territory with 10% decline from peak
- 72% of respondents express concerns about inflation outpacing wage growth
- Midwest manufacturing sector shows 15% drop in durable goods orders
The latest University of Michigan consumer survey paints a bleak economic picture, with sentiment indices falling 8.6% since January. Analysts attribute the decline to dual pressures from ongoing trade negotiations and volatile equity markets. Federal Reserve data shows personal savings rates have increased 2.3% month-over-month, suggesting households are preparing for potential economic turbulence.
Financial markets reflect these anxieties, with the S&P 500 recording its fastest correction since 2020. While Friday saw partial recovery, year-to-date losses remain at 7.4% for the benchmark index. Market strategists note unusual options activity indicating investors are hedging against further declines through Q2.
Regional economic data reveals specific vulnerabilities. A case study of Ohio's manufacturing sector shows 23 automotive suppliers have reduced shifts since February, directly impacting 4,500 workers. This localized contraction aligns with national trends showing a 1.8% decrease in factory output last quarter.
Industry-specific insights uncover three critical developments: 1) Retailers report 12% surge in essential goods stockpiling, 2) Commercial real estate leasing activity drops 18% in major metros, and 3) Tech sector hiring freezes now affect 34% of Fortune 500 companies. Economists warn these indicators could signal broader economic softening.