While the survey of 400 respondents comes amid low unemployment and a growing economy, increasing consumer and business fears over tariffs and a possible recession could hurt spending, warned economists.

“The recent equity market correction was punctuated by the ‘uncertainty shock’ of ever-evolving tariff policy, with investors concerned it could morph into a slowdown or even recession,” Morgan Stanley said in a note Monday.

“What’s really at the heart of the conundrum, however, is that the United States might be at risk for a bout of stagflation, where growth slows and inflation remains sticky.”

Last week, UCLA Anderson School of Management issued its first-ever “recession watch.”

“Be careful what you wish for because, if all your wishes come true, you could very well be the author of a deep recession,” said Clement Bohr, an economist at the business school warned the Trump administration.

“And it may not simply be a standard recession that is being chaperoned into existence, but a stagflation,” Bohr added.

The U.S. Federal Reserve said last week the U.S. economy had made “significant progress toward our goals over the past two years” on inflation and that the economy remains “strong overall.” But the feds held interest rates steady to navigate recession fears.

Federal Reserve Chair Jerome Powell and other officials also lowered their estimate for gross domestic product this year to just a 1.7% annualized gain and raised their core inflation outlook to 2.8%, which is still above the central bank’s 2% inflation target.

That combination of higher inflation and slower growth raises the possibility of stagflation, which was last seen in the 1980s. Still, Powell rebuffed the comparison.

“I wouldn’t say we’re in a situation that’s remotely comparable to that is likely,” he said.