Consumer confidence in the US is falling quickly, and worries about inflation are making it worse.
The Consumer Sentiment Index fell another 3.3 points in March, to 53.3, its lowest level since December 2025. It is currently below the lows observed during the 2008 financial crisis and almost at the bottom from the 1980s recession, which is more crucial.
What makes it go?
People are starting to expect inflation again.
1-year expectations jumped to 3.8%, marking the biggest monthly increase since April 2025.
In this case, timing is important.
About two-thirds of the survey responses came in after the Iran war started on February 28. Those respondents reported feeling much worse and expecting inflation to rise.
This isn't just one thing.
The drop affects people of all ages, but it is more severe for households with middle- and higher-income levels. This is probably because gasoline prices are going up and markets are becoming less reliable.
In short, people in the US don't trust the economy like they used to.
