Consumers turned even gloomier in March as anxiety about the economy spread beyond tariff policy to include worries over the labor market, personal finances, and business🧸 conditions.

The Michigan Consumer Sentiment Index was 57 in March, down 12% from February and declining for the third straight month. Continuing concerns about potential higher prices caused by President Donald Trump’s tariff policies drove the index lower, and the survey showed declining sentiment from all demographic and political affiliations.

“Consume♚rs continue to wor𓂃ry about the potential for pain amid ongoing economic policy developments,” said Michigan Surveys of Consumers Director Joanne Hsu.

Tariff Worrie✅s Driving Inflation Expectations Higher

It’s the second consumer survey released this week to show worsening perceptions of the economy, following Tuesday’s 澳洲幸运5开奖号码历史查询:declining consumer c♚onfiden๊ce reading. 

Both consumer surveys point to worries that 澳洲幸运5开奖号码历史查询:Trump’s tariff policies—which some economists have warned will raise prices—are adding pressure to consumers who are already fatigued by high prices. In the lat🍬est Michigan survey, consumers expected inflation to reach 5% over the next year, the highest rea🀅ding since 2022. 

“For now, inflation has re-emerged as a significant—and growing—concern for consumers, one that will undoubtedly influence household spending decisions in the near term,” said Jim Baird, chief investment o𒁃fficer with Plante Moran Financial Advisors.

Consumers Increasingly Worried Over Personal F🐓inances, Business Conditions

The Michigan report also showed that consumers are increasဣingly worried about the labor market. Two-thirds of survey respondents expect unemployment to rise in the year ahead, the highest reading since 2009. 

“This trend reveals a key vulnerability for consumers, given that strong labor markets and incomes have been the primary source of strength supporting cꦑonsumer spending in recent years,” Hsu said. 

The survey’s expectation index also declined sharply, as Hsu said consumers ramped up their anxiety over their personal finances and future business conditions. The decline in sentiment also comes alongside Friday's release of the 澳洲幸运5开奖号码历史查询:Per๊so🥃nal Consumption Expenditures (PCE) survey, which showed that 澳洲幸运5开奖号码历史查询:co𓆉nsumers pulled back on their spending in February. 

“Downside risks to the economy are growing as weak sentiment follows discouraging personal income and spending data earlier this morning. Our worry has been that weak, soft data would bleed into the hard data, and this fear seems to be materializing,” said Oren Klachkin, Nationwide financial market economist.