Consumer sentiment in the United States tumbled to a 29-month low in March, with the University of Michigan’s survey reporting an index reading of 57.6, down from 64.7 in February. This decline reflects growing unease among households about the economic outlook.
Much of the post-election optimism has faded as many Americans express concern about rising inflation tied to newly imposed tariffs and broader uncertainty surrounding economic policy. Short-term expectations deteriorated markedly: the index measuring sentiment about the next six months fell to 54.2 from 64.0, a drop that takes it to levels not seen since mid-2022.
Notably, the decline in confidence spans the political spectrum. Even among Republicans—who showed elevated optimism immediately after the election—confidence has slipped roughly 10% from those earlier highs.
Financial markets have reacted to these developments. Stocks have shown volatility amid worries about the economic impact of tariffs and the possibility of slower growth or recession. At the same time, household inflation expectations have risen to a 29-month peak, adding pressure to consumer sentiment and spending plans.
Overall, the combination of tariff-related inflation concerns, policy uncertainty and weaker near-term expectations points to a more cautious consumer outlook, which could weigh on demand if the trends persist.