Consumer confidence took a bigger hit than expected this month, as concerns over the stock market downturn and potential new tariffs weighed heavily on sentiment. According to the latest University of Michigan Consumer Sentiment Survey, the overall index dropped to 57.9, marking a 10.5% decline from February and hitting its lowest level since November 2022.
Key Findings From the Report
- Consumer expectations for the future plunged 30% year-over-year, reflecting growing economic uncertainty.
- Long-term inflation expectations surged to their highest level in three decades, as fears mount that tariffs will drive up prices.
- Market volatility and trade concerns continue to erode confidence, making consumers more cautious about spending.
What’s Next?
With inflation concerns resurging and trade tensions escalating, economists warn that consumer confidence could remain shaky in the coming months. The report suggests that persistent uncertainty could impact spending behavior, adding further pressure on economic growth in 2024.
