Consumer confidence on shaky ground, car sales expected to plummet

Recent volatility in the economy and the stock market, driven by tariffs and mass layoffs, has led to a plunge in consumer confidence. In fact, consumers feel nearly 8% less confident about their financial outlook this month than they did one year ago, according to the latest Wallet Hub economic index, released on Wednesday. This drop is so severe that consumer sentiment is now at its fourth-lowest point in the past five years.

The WalletHub Economic Index is based on a monthly survey that evaluates economic prospects based on 10 components of consumer sentiment. These components revolve around how people feel about their finances, purchasing plans and employment opportunities.

Key Stats

• Decreasing interest in auto purchases: The share of consumers who expect to buy a car in the next six months is over 13% lower in April 2025, compared to last year.
  
• Real estate popularity drop: Home-buying interest among consumers decreased by over 10% in April 2025 compared to last year.
  
• Large purchases are not a priority: In April 2025, consumers' likelihood of making a large purchase in the next six months is nearly 10% lower, compared to last year.
  
• Decrease in debt-reduction confidence: The share of consumers who expect to have less debt after the next six months is roughly 4% lower in April 2025 compared to last year.

The complete WalletHub Economic Index results can be found at https://wallethub.com/edu/wallethub-economic-index/91926