Consumer Sentiment Tumbles Further in March With Even Republicans Losing Faith

The mood of consumers has taken another sharp downward turn in March as President Donald Trump’s disorderly rollout of import tariffs and persistent inflation have dampened the enthusiasm of Americans toward the economy.

The March consumer sentiment survey from the University of Michigan registered a 10.5% drop following February’s sharp decline. While sentiment about current conditions fell only 3.3% in March, the index of consumer expectations posted a 15.3% drop. That has now fallen by 30% over the last year.

While Michigan’s survey often shows sharp partisan differences in sentiment, the March survey found a 10% decline in future expectations among Republicans. The sentiment among Democrats was off by 24%, while among independents it was down 12%.

“While current economic conditions were little changed, expectations for the future deteriorated across multiple facets of the economy, including personal finances, labor markets, inflation, business conditions, and stock markets,” survey director Joanne Hsu said in an analysis. “Many consumers cited the high level of uncertainty around policy and other economic factors; frequent gyrations in economic policies make it very difficult for consumers to plan for the future, regardless of one’s policy preferences.”