Consumer confidence in the United States has fallen for the third consecutive month, as economic concerns intensify amid ongoing trade tariff chaos. According to the latest survey released by the University of Michigan on Friday, the consumer sentiment index slid to 57.9 in March, marking a significant 10.5% drop from the previous month and a 27.1% decrease compared to March last year.
“Declines were seen consistently across all groups by age, education, income, wealth, political affiliations, and geographic regions,” the survey noted. The dip in confidence reflects growing unease about the future of the economy, with expectations deteriorating across multiple facets, including personal finances, labor markets, inflation, business conditions, and stock markets.
The report highlighted that many consumers cited a high level of uncertainty around policy and other economic factors. “Frequent gyrations in economic policies make it very difficult for consumers to plan for the future,” the survey explained.
Inflation expectations have also surged. Year-ahead inflation expectations jumped from 4.3% last month to 4.9% in March, the highest reading since November 2022. This marks three consecutive months of unusually large increases of 0.5 percentage points or more. Long-run inflation expectations leaped from 3.5% in February to 3.9% in March, the largest month-over-month increase seen since 1993.
The declining consumer sentiment and rising inflation expectations signal potential challenges ahead for the U.S. economy. As trade tensions and policy uncertainties continue, consumers and businesses alike may face difficulties in financial planning and economic stability.
