The latest survey from the University of Michigan reveals a significant drop in U.S. consumer sentiment for the third consecutive month. Amid what experts describe as "tariff chaos," consumers are feeling the pinch with a 10.5 percent decline, bringing the current reading down to 57.9.
This downturn has been felt across all demographics—by age, education, income, and political affiliation—highlighting a nationwide concern. The current figure is a staggering 27.1 percent lower than what was recorded in March of last year.
As economic conditions remain relatively steady, future expectations have deteriorated sharply. Shifts in personal finances, labor markets, inflation, and business conditions are at the forefront of consumer worries. Many point to the frequent changes in economic policies as a key factor contributing to the uncertainty, making long-term planning increasingly difficult.
In addition, inflation expectations are on the rise. Year-ahead figures jumped from 4.3 percent last month to 4.9 percent this month—the highest since November 2022—while long-run inflation expectations increased from 3.5 to 3.9 percent, marking the largest month-over-month surge since 1993.
With these developments, the survey reflects a broader narrative of economic uncertainty that not only affects everyday consumers but also impacts global business trends and future market strategies. As the U.S. navigates these challenges, both experts and the digitally connected global community continue to watch closely for what comes next.
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U.S. consumer sentiment slumps for third month amid tariff chaos
cgtn.com
