U.S. March consumer sentiment plunges


By Xu Jing

NEW YORK, March 27 (Xinhua) -- The U.S. consumer sentiment index plunged 6 percent in March as a result of rising gas prices and volatile financial markets, exacerbated by the ongoing Iran conflict, a survey has found.

The U.S. Consumer Sentiment Index released Friday by the University of Michigan (UM) Surveys of Consumers fell to 53.3 in the March 2026 survey, down from 56.6 in February and below last March's 57.

The Current Economic Conditions Index fell to 55.8, down from 56.6 in February and below last March's 63.8. The Index of Consumer Expectations fell to 51.7, down from 56.6 in February and below last March's 52.6.

The survey found that year-ahead gas price expectations surged about fivefold from February to reach their highest reading since June 2022, and year-ahead expectations for personal finances fell 10 percent, with 47 percent of consumers providing unsolicited comments that prices are weighing down their personal finances.

With short-term economic outlook expectations plunging 14 percent, about 61 percent of consumers expect unemployment to rise in the year ahead, up from 58 percent last month.

Year-ahead inflation expectations climbed from 3.4 percent in February to 3.8 percent in March, the largest one-month increase since April 2025. The reading also exceeds those seen in 2024.

Although the long-term expectations saw only modest declines, "these views are subject to change, however, if the Iran conflict becomes protracted or if higher energy prices pass through to overall inflation," said UM Surveys of Consumers Director Joanne Hsu.

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