US Consumer Confidence Drops Sharply for Third Consecutive Month
US consumer sentiment fell to a 10-month low in March, marking its third straight monthly decline as escalating tariff tensions and inflation fears fueled economic anxieties, according to the University of Michigan’s closely watched survey released Friday.
The sentiment index dropped another 10.5% this month to 57.9, with declines recorded across all demographics, including age, income brackets, and political affiliations. The figure now stands 27.1% lower than March 2023 levels.
Economic Uncertainty Spurs Widespread Pessimism
While current economic conditions remained stable, expectations for future growth slumped sharply. Consumers expressed heightened concerns about personal finances, inflation, business prospects, and stock market volatility. Researchers noted that inconsistent policymaking and unpredictable trade dynamics made it "very difficult for consumers to plan for the future."
Inflation Expectations Reach 16-Month High
Year-ahead inflation expectations jumped to 4.9% in March – the highest since November 2022 – following three consecutive months of significant increases. Long-term inflation projections surged to 3.9%, representing the largest monthly rise since 1993.
Analysts warn these trends could complicate Federal Reserve decision-making, potentially delaying interest rate adjustments despite market pressures.
