Consumers’ inflation outlook worsened this month as the war in Iran weighed on sentiment.
Global energy prices have surged since the start of the military conflict in Iran, causing pain at the pump—and the possibility of renewed inflationary pressures across the marketplace.
The University of Michigan’s March Consumer Sentiment Index, released on March 27, declined by 6 percent to its lowest level since December 2025.
The indexes for current economic conditions and consumer expectations slipped to 1.4 percent and 8.7 percent, respectively, from the previous month.
Weakening views of the economy were broad-based across age, income, and political party.
Middle- and high-income households with stock wealth “exhibited particularly large drops in sentiment,” says Joanne Hsu, director of consumer surveys at the University of Michigan….