The final
reading for the March Reuters/Michigan index of consumer sentiment came in at 57.0
compared to the flash reading of 57.9 and the February final reading of 64.7. That marked the lowest reading since November 2022 (56.8).
Economists
had expected the indicator to remain unrevised at 57.9.
The details of
the latest Surveys of Consumers of the University of Michigan revealed that the
index of current economic conditions decreased by 2.9 per cent m-o-m to 63.8
this month (the lowest level in six months), while the index of consumer
expectations plummeted by 17.8 per cent m-o-m to 52.6 (the lowest level since
July 2022 (47.3)).
The survey also
showed that the year-ahead inflation expectations soared from 4.3 per cent in February to 5.0 per cent in March,
compared
to the preliminary reading of 4.9 per cent. That represented the highest
reading since October 2022 (5.0 per cent). Meanwhile, the 5-year inflation expectations
surged from 3.5 per cent in February to 4.1 per cent, compared to the preliminary reading of 3.9
per cent. That was the highest print since February 1993.
Commenting on
the latest results, Joanne Hsu, Surveys of Consumers Director, noted that consumers
continue to worry about the potential for pain amid ongoing economic policy developments.
“Notably, two-thirds of consumers expect unemployment to rise in the year
ahead, the highest reading since 2009,” she added. “This trend reveals a key
vulnerability for consumers, given that strong labor markets and incomes have
been the primary source of strength supporting consumer spending in recent
years.”