Happy consumers spend more money—on products and services. Chain Store Age (CSA) reports that “consumer confidence took a significant hit in March.” The University of Michigan’s Consumer Sentiment Index fell 11% to its lowest level since November 2022, marking three consecutive months of declining consumer confidence. In fact, it is 22% below December 2024.
The significant drop was in the consumer expectations index (which measures sentiment for the next six months), which plummeted 15.3% from February to March.
CSA reports that the declines in March were felt across all demographics, including age, education, income, wealth, political affiliations, and geographic regions. Joanne Hsu, the director of consumer research for the Index, explains: “Expectations for the future have deteriorated across multiple aspects of the economy, including personal finances, labor markets, inflation, business conditions, and stock markets. Many consumers cited the high level of uncertainty surrounding policies and other economic factors. Frequent fluctuations in economic policies make it very difficult for consumers to plan for the future, regardless of individual political preferences.”
Source: Currents