US consumer sentiment plummets amid Iran conflict

US consumer sentiment declined 5.8% in March to its lowest level since December 2025, according to University of Michigan data released Friday.

Index of Consumer Sentiment reached 53.3 this month, down from 56.6 in February, as consumers reacted to escalating energy costs.

Short-run economic outlook plunged 14% while expected personal finances for year ahead sank 10% during same period.

Middle and higher income households with stock wealth showed particularly large drops in sentiment due to volatile financial markets following start of US military conflict in Iran.

Year-ahead inflation expectations climbed to 3.8% in March, marking largest one month increase since April 2025.

Long-run inflation expectations remained relatively stable at 3.2% compared to previous levels.

About two-thirds of interviews for latest report were completed after start of military conflict in Iran.