Shoppers will pay their credit card at Farmers Market in San Francisco on March 27, 2025.
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A University of Michigan survey released Friday found that consumer sentiment was even worse than expected in March as concerns about inflation intensified.
The final version of the closely monitored survey of university consumers showed a monthly reading of 57.0, down 11.9% from February and 28.2% from a year ago. The economists surveyed by Dow Jones were hoping for a mid-month level of 57.9.
Research Director Joan Huss said it was a third consecutive drop, growing across the party’s boundaries and revenue groups.
“Consumers continue to worry about the possibility of pain amid the ongoing development of economic policy,” she said.
In addition to concerns about the current situation, the survey’s consumer expectations indicators fell to 52.6, down 17.8% and 32% over the same period in 2024.
The fear of inflation has driven many recessions. Respondents expect inflation to run at a rate of 5% one year from now. It’s up 0.1 percentage points from mid-month reading and accelerates 0.7 percentage points from February. On the five-year horizon, the current outlook is 4.1%, the survey has read more than 4% for the first time since February 1993.
Economists are worried that President Donald Trump’s tariff plans could drive more inflation and cut the Federal Reserve from further interest rate cuts.
The report came on the same day that it said its core inflation rate rose to 2.8% in February after a monthly gain of 0.4%, which was the biggest move since January 2024.
The latest results also reflect concerns about the labor market, with consumer levels hoping that unemployment rates will rise at the highest level since 2009.
The stock was a hit after the university’s investigation was announced. The Dow Jones Industrial Array Array Array exceeded 500 points.
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