U.S. consumer sentiment declined in March, reaching a three-month low as rising energy costs and market volatility weighed on economic confidence.
The University of Michigan’s Consumer Sentiment Index fell to 53.3, down from 55.5 earlier and below economists’ expectations of 54.0.
The latest reading marks a steady decline from February’s 56.6, signaling growing caution among households about the economic outlook.
Economists warn that increasing energy expenses and recent market selloffs could weaken consumer spending, a key driver of U.S. economic growth.
Short-term inflation expectations rose notably, with consumers now projecting prices to increase 3.8% over the next year, up from 3.4%.
Long-term inflation expectations edged slightly lower to 3.2%, suggesting mixed views on price stability over time.
The data highlights mounting pressure on households as cost-of-living concerns intensify, potentially shaping future economic and policy trends.
