U.S. consumer confidence declined in March, continuing a four-month pattern of fluctuations as economic uncertainty persists, according to the latest LSEG/Ipsos Primary Consumer Sentiment Index (PCSI).

The overall index dropped by 1.3 points to 54.0, with the Expectations Index seeing the sharpest decline, falling 3.5 points to 60.7. The Jobs Index and Investment Index also recorded modest declines, dropping by 1.1 and 0.9 points, respectively. The Current Index dipped by 0.5 points to 45.4.

“Americans’ expectations about the future of the economy, as well as their current views on the job market, have declined significantly over the past four months,” said Johnny Sawyer, senior research manager at Ipsos. “This is largely driven by growing concerns over job security and broader economic conditions.”

The report noted that uncertainty surrounding trade policies, including tariffs and escalating trade tensions, is a primary driver of declining consumer sentiment. Nearly 60% of retailers cited tariffs as a key concern in their fourth-quarter earnings reports, according to LSEG Consumer Research Director Jharonne Martis. As a result, the LSEG Retail and Restaurant Index revised its earnings growth projection downward, now anticipating single-digit growth for the first half of 2025.

While consumer sentiment has fluctuated in recent months, the index remains slightly higher than its reading a year ago. However, with continued concerns over employment and inflation, analysts caution that stability in consumer confidence remains uncertain as the second quarter of 2025 approaches.

The LSEG/Ipsos PCSI, conducted monthly since 2010, measures consumer attitudes toward the economy, personal finances, and investment confidence. The March survey was conducted between February 21 and March 7, with the majority of responses collected before the recent stock market downturn.

For more information, the full report is available through LSEG.