Consumer Confidence Plummets to Lowest Level Since 2022

Consumer sentiment in the United States fell to the lowest level in more than two years in March, as uncertainty over tariffs, their effect on inflation and the overall economy are clearly weighing on Americans' minds. The latest results from the University of Michigan’s monthly Index of Consumer Sentiment showed a steep decline in consumer confidence for the third consecutive month.

The overall index, which is based on at least 600 telephone interviews per month and focuses on personal finances, business conditions and buying conditions, fell to its lowest level since November 2022 and is now approaching its all-time low recorded in June 2022, when inflation peaked at almost 9 percent. The latest decline was driven by an 18 percent drop in the Index for Consumer Expectations, which is based on two questions looking 12 months ahead and one question looking at the next five years.

“This month’s decline reflects a clear consensus across all demographic and political affiliations," Survey of Consumer Director Joanne Hsu wrote. "Republicans joined independents and Democrats in expressing worsening expectations since February for their personal finances, business conditions, unemployment, and inflation. Consumers continue to worry about the potential for pain amid ongoing economic policy developments."