The University of Michigan's Consumer Sentiment Index for March has dropped to a final reading of 53.3, marking a three-month low. According to RTHK, this figure is below the preliminary reading of 55.5 and February's final value of 56.6, with the decline exceeding expectations.
The survey indicates that the ongoing conflict in the Middle East has driven up oil prices and caused significant volatility in financial markets, heightening consumer concerns about the economic outlook. This has led to a weakening in consumer confidence, particularly among middle- to high-income individuals and those with stock assets.
Inflation expectations for the coming year have risen to a final value of 3.8%, surpassing both the preliminary and February final readings of 3.4%. However, the five-year inflation expectation has slightly decreased to 3.2%.
