US Michigan Consumer Sentiment Revised Lower

2025-03-28 14:05 By Joana Taborda 1 min. read

The University of Michigan consumer sentiment for the US was revised lower to 57 in March 2025 from a preliminary of 57.9, and well below 64.7 in February.

Consumer sentiment fell for a third straight month to hit the lowest since November 2022 as consumer's expectations worsened for personal finances, business conditions, unemployment, and inflation.

Consumers continue to worry about the potential for pain amid ongoing economic policy developments.

Notably, two-thirds of consumers expect unemployment to rise in the year ahead, the highest reading since 2009.

The expectations index fell to 52.6 from a preliminary of 54.2 and hitting the lowest since July 2022.

The current conditions gauge on the other hand, was revised slightly higher to 63.8 from a preliminary of 63.5.

Meanwhile inflation expectations for the year ahead topped 5%, the highest since November 2022 and above 4.9% in the preliminary estimate.

Long-run inflation expectations were also revised higher to 4.1% from 3.9%.



News Stream
US Consumer Sentiment Lowest on Record
The University of Michigan’s Consumer Sentiment Index was revised up to 49.8 in April 2026 from an initial estimate of 47.6, according to final data. Despite the slight improvement, this remains the weakest reading on record, reflecting the heavy toll of the Iran conflict on consumer morale. Sentiment declined across all demographics, regardless of political affiliation, income, age, or education. Expectations for business conditions deteriorated for both the short and long term, nearly matching levels seen a year ago when reciprocal tariffs were introduced. While the two-week ceasefire and a slight dip in gasoline prices helped sentiment recover a fraction of its early-month losses, the conflict’s primary impact on consumers stems from energy and broader price shocks. Inflation expectations surged, with year-ahead expectations jumping to 4.7% from 3.8%, the largest one-month increase since April 2025, while long-term expectations climbed to 3.5%, the highest since October 2025.
2026-04-24
US Consumer Sentiment Collapses to Record Low
The University of Michigan’s Consumer Sentiment Index plummeted 11% to a historic low of 47.6 in early April 2026, far below both market expectations of 52 and last year’s level by 9%. Nearly all surveys (98%) were conducted before the temporary cease-fire announcement, underscoring the Iran conflict’s immediate impact on confidence. Sentiment declined across all demographics, as well as every index component, signaling a broad-based drop. One-year business condition expectations crashed 20%, while assessments of personal finances fell 11%, with consumers citing rising prices and shrinking asset values as key concerns. Buying conditions for durables and vehicles deteriorated further, again due to high costs linked to the war. Year-ahead inflation expectations spiked to 4.8% from 3.8% in March, the largest one-month jump since April 2025, while long-term inflation expectations rose to 3.4%, the highest since November 2025.
2026-04-10
US Consumer Sentiment Revised Lower in March
The University of Michigan’s Consumer Sentiment Index fell sharply to 53.3 in March 2026, down from the preliminary estimate of 55.5 and below February’s 56.6. This places sentiment near record lows observed at the end of 2025, with declines spanning all age groups and political affiliations. Households with middle and higher incomes, as well as those with stock wealth, experienced the steepest drops in confidence. The downturn reflects the impact of rising gas prices and financial market volatility, both exacerbated by the ongoing Iran conflict. The short-term economic outlook plunged 14%, while expectations for personal finances over the next year dropped 10%. However, long-term expectations saw only modest declines, hinting that consumers may not anticipate the current challenges to persist indefinitely. Year-ahead inflation expectations rose to 3.8%, the largest monthly increase since April 2025, while long-term expectations edged down to 3.2%.
2026-03-27