U.S. consumer confidence fell this month by the most since August 2021 on concerns about the outlook for the broader economy, adding to evidence that uncertainty over the Trump administration’s policies is weighing on households.

The Conference Board’s gauge of confidence decreased 7 points in February to 98.3, marking the third straight decline, data released Tuesday showed. The figure was below all estimates in a Bloomberg survey of economists.

A measure of expectations for the next six months also fell by the most in three-and-a-half years, while a gauge of present conditions declined more modestly.

The drop in confidence was broad across age groups and incomes. Consumers were more pessimistic about current and future labor-market conditions, as well as the outlook for incomes and business conditions. Perceptions of present and future financial situations worsened, and the share of respondents expecting a recession in the next year rose to a nine-month high.

“References to inflation and prices in general continue to rank high in write-in responses,” Stephanie Guichard, senior economist of global indicators at The Conference Board, said in a statement. “Most notably, comments on the current administration and its policies dominated the responses.”

Tuesday’s report reinforces other surveys that show consumer and business sentiment is waning after an initial surge of optimism in the wake of Donald Trump’s election victory. Households and companies now appear more wary of higher prices due to tariffs, especially as inflation pressures seem to be intensifying again and the labor market gradually cools.

Some companies have started to take notice.

“The consumer right now is confused,” said Scott Baxter, chief executive officer of Kontoor Brands Inc., the maker of Lee and Wrangler jeans brands.

“If you just put yourself in their seat, they’re worried about work,” the CEO said during the company’s quarterly call with analysts Tuesday. “They’re worried about the businesses that they’re in. Are those going to be impacted by some of the layoffs, the tariffs, the current situation right now?”

Inflation expectations over the coming year increased to the highest since May 2023, reflecting the recent jump in the cost of eggs as well as anticipated higher prices from Trump’s planned tariffs. U.S. consumers’ long-term inflation expectations in a separate report from the University of Michigan released last week rose to the highest level in almost three decades.

Federal Reserve officials including Chair Jerome Powell have signaled they’re keeping interest rates steady until progress on inflation resumes. For the first time since July, a majority of respondents said they expect higher interest rates in the year ahead, according to the confidence report.

“Post-election swings in consumer attitudes tend to be short-lived, with consumers focusing more of fundamentals like jobs and incomes. Recent financial-market turbulence reflects uncertainty over how Trump administration policies will impact inflation, jobs and the economic outlook,” said Eliza Winger, a Bloomberg analyst.

Elevated borrowing costs are weighing on buying conditions for big-ticket items like cars and certain appliances. The share of consumers planning to take a vacation in the next six months declined to the lowest since April 2021.