According to the University of Michigan Consumer Sentiment Index, consumer confidence declined to 53.3 in March, down from 56.6 in February. This is the lowest Index level since December 2025.
Key factors in the March Report:
- Declining Confidence: Consumer sentiment weakened amid growing concerns about the war in Iran and rising gasoline prices.
- Key Components: The index for current economic conditions increased to 57.8, while the consumer expectations index dropped to 54.1.
- Inflation Expectations: One-year inflation expectations held steady at 3.4%.
- Demographic Impact: Sentiment fell most sharply among middle- and high-income households, as well as individuals with stock market exposure.
The survey also noted that earlier gains in consumer sentiment were fully reversed due to financial uncertainty following the onset of the Iran conflict on February 28, 2026.
