ANN ARBOR, Mich. — U.S. consumer sentiment declined in March, reflecting growing frustration over personal finances and inflation, according to the latest Surveys of Consumers from the University of Michigan.
The preliminary March reading of the Consumer Sentiment Index fell to about 55.5, down from 56.6 in February, marking the lowest level of 2026 and extending a period of subdued confidence among households.
The report found the decline was broad-based, with consumers across income levels, age groups and political affiliations reporting weaker expectations. In particular, expectations for personal finances dropped 7.5% nationally.
Survey interviews were conducted between Feb. 17 and March 9, with roughly half of responses collected after the onset of a U.S. military conflict involving Iran, which researchers said contributed to a noticeable deterioration in sentiment.
Gas Adds Fuel to Declining Outlook
Rising prices—especially for gasoline—were a key factor weighing on consumers’ outlook. Higher fuel costs have strained household budgets and added to concerns about inflation, the survey indicated.
Inflation expectations also showed signs of firming. Year-ahead inflation expectations, which had been declining for several months, stalled at roughly 3.4%, remaining above the range seen in the years before the pandemic.
Economists view the Michigan survey as an important gauge of household attitudes and a potential indicator of future spending. The March data suggest consumers remain cautious, with persistent price pressures and geopolitical uncertainty continuing to weigh on confidence.
