The US consumer confidence dropped to its lowest level in the last three years as the spread of the coronavirus pandemic progresses, according to data from the University of Michigan.

The Consumer Confidence Index dropped to 89.1 points in March or its lowest level since October 2016. At the same time, the indicator registered its steepest decline since 2008. In February, the meter reported 101 points, which was its second-highest level since 2004.

The mood drop in March is the fourth largest in nearly 50 years, according to Richard Curtin, director of the study. “The extent of the downturns in April will depend on the success of the measures to curb the spread of the virus and how quickly households will receive funds to alleviate their financial difficulties,”, added Richard Curtin.

Worldwide, 650,000 people are infected with coronavirus, according to data from Jones Hopkins University. The United States has reported 120,000 cases, ahead of China and Italy, the country with the most confirmed cases.

“The forecast for the national economy for the coming year has changed dramatically in March, with the majority now expecting difficult financial times across the country”, said Richard Curtin.

The report provides one of the most sobering pictures of how economic blockade, against the backdrop of efforts to curb the virus, affects consumer attitudes.

The pandemic has caused several businesses to cease or limit their operations. It also triggered a record jump in the number of applications for unemployment benefits last week. On Wednesday, the Senate passed a 2 trillion USD fiscal stimulus bill to cushion the economic impact of the coronavirus.

“Mitigating the negative effects on health and finances may limit growing pessimism, but it will not lead to optimism. There is no silver bullet to cure a pandemic as suddenly as the military victory that ended the Gulf War”, added Richard Curtin.