Consumer Sentiment Drops to 29-Month Low as Economic Uncertainty Grows

The University of Michigan survey reveals sharp declines in optimism across all demographics, fueled by inflation concerns, tariffs, and erratic policies.

Consumer sentiment fell 11% in March to a score of 57.9, marking the lowest level since November 2022 and a 22% decline since December 2024.
The drop in confidence was broad-based, affecting all demographics regardless of age, income, political affiliation, or geographic region.
Inflation expectations surged, with short-term expectations rising to 4.9% and long-term expectations jumping to 3.9%, the largest one-month increase since 1993.
Survey respondents cited high levels of economic uncertainty, driven by policy shifts, tariffs, and a slumping stock market, as key factors behind the pessimism.
Economists warn that declining consumer confidence could signal further economic challenges, potentially complicating Federal Reserve efforts to balance inflation and growth.