FX.co ★ US Michigan Consumer Sentiment Revised Lower

The University of Michigan's consumer sentiment index for the United States has been adjusted downward to 57 for March 2025, from a preliminary figure of 57.9, and remains significantly lower than February's 64.7. This marks the third consecutive monthly decline, bringing the index to its lowest point since November 2022, primarily due to deteriorating expectations regarding personal finances, business conditions, unemployment, and inflation. There is a pervasive anxiety among consumers driven by ongoing economic policy shifts and the prospect of potential economic challenges. Notably, two-thirds of consumers anticipate a rise in unemployment over the coming year, reaching levels of concern last observed in 2009. The expectations index has dropped to 52.6 from an initial estimate of 54.2, marking the lowest since July 2022. Conversely, the current conditions index has seen a slight upward revision, now at 63.8 compared to the preliminary 63.5. Inflation expectations for the next year have surged past 5%, the highest since November 2022, exceeding the preliminary estimate of 4.9%. Additionally, long-term inflation expectations have also been adjusted upward to 4.1% from an earlier forecast of 3.9%.