Consumer expectations hit 14-year low; Merck starts work on $1 billion manufacturing plant; Office attendance edges down

Consumers’ year-ahead expectations for business and labor market conditions fell to a nearly 14-year-low in the latest monthly survey by the Conference Board, another indicator of rising apprehension about inflation and other potential effects of trade tariffs.

The New York-based economic research group said Tuesday its overall confidence index fell nearly 8 points from the prior month to 86 in April, with 1985 used a base of 100. The Conference Board tracks consumer confidence based on several metrics regarding household finances and the larger economy, with numbers below 100 generally reflecting perceptions of declining prospects.

The organization’s separate year-ahead expectations index posted at 54.4 for April, down 12.5 points from the prior month and the lowest reading since October 2011. It was also well below the threshold of 80 that usually signals a recession ahead, researchers said.

“Consumer confidence declined for a fifth consecutive month in April, falling to levels not seen since the onset of the COVID pandemic,” Conference Board Senior Economist Stephanie Guichard said in a statement. The group said April’s decline was broad-based across all age groups and most income groups, but was sharpest among respondents age 35 to 55 and those in households earning more than $125,000 annually.

Other closely watched surveys, including one by the University of Michigan, have found consumer confidence dropping within the past two months as the Trump administration ramps up tariffs affecting numerous global trading partners. Economists and corporate leaders have warned of inflation and recession risks, though the administration has said talks are still ongoing with several countries.

The White House confirmed Tuesday that it will continue with a current 25% tariff on imported cars, but will not impose others on automakers for materials such as steel and aluminum. It plans to allow some reimbursements to automakers for a 25% tariff on auto parts slated to take effect May 3.

Global pharmaceutical giant Merck broke ground Tuesday on a $1 billion production facility in Delaware, joining rival drugmakers and other companies seeking to boost domestic manufacturing ahead of planned trade tariffs on imported goods.

Rahway, New Jersey-based Merck said its 470,000-square-foot Wilmington facility will include laboratory, manufacturing and warehousing components, as the drugmaker looks to expand its product development pipeline. The project reflects Merck’s focus on “growing our investments in U.S. manufacturing and has the potential to create thousands of high-paying American jobs,” chairman and CEO Robert Davis said in a statement.

The Delaware facility is intended to be the prime manufacturing hub for Merck products such as cancer drug Keytruda for U.S. patients, with further expansion planned beyond its initial investment in Wilmington, the statement said. Located in the city’s Chestnut Run Innovation & Science Park, the project is expected to create more than 500 full-time jobs and roughly 4,000 construction jobs, with most components expected to be operating by 2030.

The Merck plant follows significant new U.S. facility investments announced by rival drugmakers such as Roche, Johnson & Johnson and Eli Lilly. Several other companies are increasing domestic production, spurred in part by current or planned trade tariffs, including IBM, Apple, Oracle and Hyundai.

Office attendance in 10 large cities averaged 50.9% of its pre-pandemic level for the week ended April 23 in the latest tracking by Kastle Systems. That was down from 53.4% in the prior week but stayed close to the peak 54.5% posted in early March after more than five years of reporting by the security technology firm.

Based on anonymous keycard data from Kastle’s office property clients, attendance for the past week may have been affected by factors such as the Easter holiday and severe weather that hit several states. Texas cities have consistently led the pack for office traffic but posted declines from prior weeks, with Austin at 59.1%, Dallas at 58.8% and Houston at 57.2%.

They were followed by Chicago at 54.3%, New York at 49.5% and Washington, D.C., at 49.4%.