U.S. Consumer Confidence Crashes

U.S. Consumer Confidence Crashes

Consumer sentiment in the U.S. dropped significantly, reflecting increasing unease over ever-changing federal economic policies and their potential to drive inflation higher.

 

“The University of Michigan’s closely watched index of consumer sentiment nosedived an additional 11% to 57.9 in mid-March from 64.7 last month, much weaker than expectations of 63.2. It marks the lowest level since 2022 and a third fall in as many months,” reported the Wall Street Journal

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“Compared to this time last year, consumer sentiment is down 27%. A loss of confidence can be a headwind for economic growth, since consumers can delay or abandon planned purchases if they feel downbeat about their prospects. Many consumers cited the high level of uncertainty around policy and other economic factors, said Joanne Hsu, director of the survey,” added the WSJ.

 

“Many consumers cited the high level of uncertainty around policy and other economic factors; frequent gyrations in economic policies make it very difficult for consumers to plan for the future, regardless of one’s policy preferences,” Joanne Hsu, director of the survey, said in a statement.

 

“The University of Michigan’s early-March reading of consumer sentiment reflects uncertainty and anxiety that goes well beyond the potential inflationary impact of tariffs. Consumers increasingly are worried their job and income prospects as well,” economist Eliza Winger told Bloomberg.