(NewsNation) — Consumer sentiment fell sharply in March as inflation and unemployment concerns rose, data released Friday by the University of Michigan shows.
The university’s Survey of Consumers found a nearly 12% drop in consumer sentiment to 57, down from February’s 64.7. The drop — the third consecutive monthly decrease — puts the index at its lowest level since 2022.
Additionally, the survey’s expectations index plummeted to 52.6 — a nearly 18% drop since February, and down 30% since November 2024.
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Notably, the change was noted across all political affiliations.
“Republicans joined independents and Democrats in expressing worsening expectations since February for their personal finances, business conditions, unemployment, and inflation,” survey director Joanne Hsu’s report said.
Consumers recorded heightened inflation expectations in March: 5%, up from February’s 4.3%.
Hsu pointed to “ongoing economic policy developments” as the cause of consumer concern.
Many of President Donald Trump’s tariff plans — including a 25% tariff on cars not made in the U.S. and reciprocal levies — are set to take effect on April 2.
Experts have warned that these tariffs could worsen inflation and hurt consumers.
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The university’s survey also found that two-thirds of consumers expected unemployment to rise in 2025. The last time that level of unemployment confidence was recorded was in 2009.
The survey’s numbers come as the Consumer Confidence Index reported a pessimistic consumer outlook, seeing a 7.2 point drop to 92.9 in March. The business group found that the measure of Americans’ short-term expectations for income, business and the job market fell 9.6 points to 65.2 — that’s a 12-year low.
On Friday, U.S. stocks fell after the discouraging updates, with the S&P 500 down 1.5% in midday trading.
The Dow Jones Industrial Average was down 520 points, or 1.2%, as of 11:30 a.m. Eastern time, and the Nasdaq composite was 2.1% lower.
The Associated Press contributed to this report.
