US Consumer Sentiment Falls Amid Iran Conflict Concerns

2026-03-13 14:08 By Joana Ferreira 1 min. read

The University of Michigan Consumer Sentiment Index fell to 55.5 in March 2026, down from 56.6 in February but slightly above market expectations of 55, according to preliminary data.

The reading marked the lowest level in three months, as households reacted to the military conflict involving the US and Iran.

Higher gasoline prices had the most immediate effect on consumers, although the broader pass-through to other prices remains uncertain.

A wide range of respondents across income groups, age brackets, and political affiliations reported weaker expectations for their personal finances, which fell 7.5% nationwide.

Year-ahead inflation expectations held at 3.4%, ending six months of declines, while long-term expectations edged down to 3.2% from 3.3%.

The survey was conducted between February 17 and March 9, with survey director Joanne Hsu noting sentiment weakened and inflation expectations rose following the start of the US military conflict with Iran on February 28.



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