Consumers Haven’t Felt This Bad About the Economy Since 2022 | Global News Avenue

For consumers, with the rise of inflation and the growth of economic uncertainty, such consumers are beginning to feel 2022 again.

The Michigan Consumer Sentiment Index fell to 57.9 in a preliminary survey in March, down from 64.7 last month. This is the lowest reading since November 2022 Inflation rate soars With the reopening of the economy following the pandemic shutdown.

Economists are surveyed Wall Street Journal and Dow Jones News The decline in March is expected to be more moderate. optimism Rose After the November election, but has since fallen with President Donald Trump’s tariff threat The rattled market. This is the third month of decline in consumer sentiment.

“As economic uncertainty increases, consumer sentiment drops further in March, potentially lifting the consumer industry’s sails out of the wind,” wrote national economist Daniel Vielhaber.

Inflation expectations soar in tariff fears

As consumers have risen at prices higher than usual over the past three months, expectations of inflation help delay sentiment. Consumers expect annual costs to increase by 4.9% in March, compared with 4.3% last month.

Although consumers’ perceptions of the current economic situation have only slightly lowered compared to last month, their expectations for the future have dropped sharply. Survey respondents expressed concerns about their personal finance, labor market, inflation, business conditions and stock markets, according to survey respondents of consumer director Joanne HSU.

“Many consumers have listed high levels of uncertainty in policy and other economic factors; the frequent circumference of economic policies makes it difficult for consumers to plan for the future regardless of their policy preferences.”

Consumer sentiment Retailer Reports have been in the spotlight lately Reduce soft spending And inflation expectations continue to rise. Uncertainty is falling and there is usually improvement after the election, but Trump’s Frequent tariff announcements have Rotten market And exacerbates consumer concerns about higher prices.

Politics does not play a role in the declined sentiment as in the past investigations, and the sentiment declines in all partisan affiliation.