Consumer sentiment took one other hit in March as worries intensified over inflation and a slumping inventory market, according to the University of Michigan’s newest sentiment survey launched Friday.
The survey posted a mid-month studying of 57.9, which represents a ten.5% decline from February and was beneath the Dow Jones consensus estimate for 63.2. The studying was 27.1% beneath a yr in the past and was the bottom since November 2022.
Whereas the present situations index fell a much less extreme 3.3%, the expectations measure for the longer term was off 15.3% on a month-to-month foundation and 30% from the identical interval in 2024.
As well as, fears grew over the place inflation is headed as President Donald Trump institutes tariffs towards U.S. buying and selling companions.
The one-year outlook spiked to 4.9%, up 0.6 share level from February and the very best studying since November 2022. On the five-year horizon, the outlook jumped to 3.9%, up 0.4 share level for the very best stage since February 1993.
Whereas the survey is usually inclined to disparities between events, survey officers stated sentiment slumped throughout partisan traces together with nearly all demographics.
“Many customers cited the excessive stage of uncertainty round coverage and different financial components; frequent gyrations in financial insurance policies make it very troublesome for customers to plan for the longer term, regardless of one’s coverage preferences,” survey director Joanna Hsu stated. “Customers from all three political affiliations are in settlement that the outlook has weakened since February.”
Expectations fell 10% for Republicans, 24% for Democrats and 12% for independents, Hsu added. Sentiment general has fallen 22% since December.
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