Consumer sentiment took a hit in March as the war with Iran fueled concerns over gas prices and other shocks to the economy.
The price per gallon of gas is shown on a sign as a customer gets fuel at a station on March 9, 2026, in Miami. Consumer sentiment took a hit in March as the war with Iran fueled concerns over gas prices and other shocks to the economy.
Sentiment fell back 6% this month to its lowest level since December, according to an update released Friday from the“We saw a sharp deterioration on multiple dimensions of the economy, particularly on short-run expectations,” said Joanne Hsu, the survey's director and chief economist. “Business conditions plunged, expected personal finances went down, inflation expectations went up, largely because of gas prices and gas price expectations.”Hsu said about two-thirds of the consumer surveys were completed after the U.S. and Israel attacked Iran, and she said there was a clear turning point in consumer sentiment after the war began.The University of Michigan produces a monthly index reading of consumer sentiment. The index registered a “53.3” in March, down from 56.6 in February and about 30 points below the survey’s long-term average. The University of Michigan’s nationwide survey asks people about business conditions, buying conditions and personal finances. They look at the economic mood of the country, and they’ve been doing so for decades. The current reading of the consumer sentiment index isn’t far off the all-time low of 50-flat, which was hit in June 2022 at the peak of pandemic-era inflation and nearly hit again this last November. The post-election high was 74 in December 2024 before hitting the skids, coinciding with the unveiling of President Donald Trump’s tariff plans. Hsu said Americans are still concerned about tariffs, mentioning them unprompted about 40% of the time. Hsu said the Iran conflict was also widely mentioned this month by survey respondents, though she said they’re still working on an accurate count because there were a variety of ways people referenced the war. Hsu said the short-run economic outlook plunged 14%, and year-ahead expected personal finances sank 10%. “We saw some deterioration both in the short run and the long run, but it was much, much stronger for the short run,” Hsu said. That suggests that consumers think most of the pain will be limited to the short run, Hsu said. But she warned that could change if the war lasts a while.President Donald Trump speaks during a Cabinet meeting at the White House, Thursday, March 26, 2026, in Washington. Pocketbook issues are always No. 1 for voters, and the weak consumer sentiment hurts Republicans more than Democrats, because the GOP controls the White House and both chambers of Congress, Belt said.Midterm elections are heavily driven by presidential performance, and the top thing people consider in terms of presidential performance is the economy, Belt said. History already suggests Democrats will recapture the tightly contested House from Republicans this year, as the sitting president’s partyIf consumer sentiment doesn’t rebound by early fall, Democrats should reap the benefits, Belt said.whole issue of the shutdown out of the way, is come back and work on things that will make it easier for them to get reelected, which is to address the affordability issue,” Belt said.But Americans are also worried about the job market. Job market sentiment got slightly worse this month but didn’t deteriorate dramatically compared to recent months.“Because people drive by those every day, and they see those big numbers,” he said.Hsu also noted particularly strong declines in sentiment among middle- and higher-income folks this month. While those families are better equipped to deal with higher gas prices, they’re also more exposed to turbulence in the stock market, she said.A 26-year-old man has been charged with attempted second-degree murder after prosecutors say he tried to push a stranger in front of an oncoming light rail traiAuthorities in Pierce County have seized large quantities of illegal drugs following a lengthy investigation, officials said.Members of the Pierce County SherifWilson faces two counts of violating a no-contact order in a domestic violence case where he is accused of stalking and harassing his former fiancée.A 28-year-old Burien man behind the wheel of a stolen Infiniti G37Happened around 2:40DUI, felony eluding, possession of a stolen vehicle.Northbound InterstateA photo shared by the city showed one of the panels pulling away from where it was bolted into the bridge.