News
Consumer Sentiment · Economic Outlook · Geopolitical Risk · Inflation Expectations
The University of Michigan Survey of Consumers reported a 1.9% decline in consumer sentiment to 55.5 in early March, marking the lowest reading of the year and a 2.6% decrease year-over-year, primarily influenced by rising gasoline prices and geopolitical tensions.
Survey director Joanne Hsu noted that initial sentiment improvements were erased by lower readings following US military action in Iran. This geopolitical event, coupled with immediate impacts from gasoline prices, contributed to a 7.5% national decline in expectations for personal finances across all demographics.
Year-ahead inflation expectations ended a six-month decline, stalling at 3.4%, which remains above 2024 and pre-pandemic levels of 2.3-3.0%. Long-run inflation expectations slightly decreased to 3.2%.
The survey data, collected between February 17 and March 9, reflects a significant portion of interviews conducted after the conflict began, indicating a broad-based deterioration in consumer outlook.
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