U.S. Consumer Sentiment Falls to Three-Month Low

U.S. consumer sentiment dropped to its lowest level since December, as higher gasoline prices and stock market volatility weighed on Americans’ outlook, according to new data from the University of Michigan.

Sentiment declined 5.8 percent from February and was down 6.5 percent compared with a year earlier.

The Index of Consumer Sentiment posted a final March reading of 53.3, below economists’ expectations of 54 and marking a three-month low, Yahoo Finance reported.

Overall, sentiment declined 5.8 percent from February and was down 6.5 percent compared with a year earlier.

The pullback follows a period of gradual improvement in recent months, making the downturn more pronounced, said Joanne Hsu, director of the survey.

Hsu noted that consumer perceptions remain sensitive to geopolitical and economic developments, including energy prices and inflation.

“Consumers are reacting not just to the geopolitical shock itself, but to broader economic conditions,” she said. “If gas prices ease and inflationary pressures do not intensify, sentiment could recover.”

The survey was conducted from February 17 to March 23, with roughly two-thirds of responses collected after the escalation of tensions involving U.S. and Israeli actions in Iran.