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US consumer sentiment falls to lowest since December as middle‑class worries mount
Consumer sentiment in the United States fell to its lowest level since December of last year, but households do not yet expect the impact of the military conflict with Iran on inflation and growth to persist over the long term, according to final results of the University of Michigan survey released on Friday.
The final value of the consumer sentiment index for March declined to 53.3 points from 56.6 points in February. Although this is the weakest reading so far this year, it remains above last year’s lows, when consumers were under heavy strain from the administration’s expansive tariff policies.
The survey showed that middle‑ and upper‑income households and private stockholders—groups that many economists view as key drivers of consumer spending—were most adversely affected. Rising gasoline prices and elevated stock market volatility, prompted by the start of the joint US‑Israeli military campaign in Iran in late February, have hit their finances and sentiment particularly hard.
Joanne Hsu, director of the consumer surveys at the University of Michigan, said this demographic saw especially sharp declines in confidence. Nationwide, short‑term economic expectations and consumers’ one‑year personal financial outlooks fell markedly. By contrast, longer‑term expectations weakened much less.
Hsu said the metrics suggest consumers do not currently expect the negative economic shocks to persist into the distant future. She warned, however, that sentiment could deteriorate sharply if the Iran conflict becomes protracted or if a sustained surge in energy prices triggers broad-based core inflation.
Published 31 March 2026
© InstaFintech Group
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© InstaFintech Group
