US consumer sentiment drops to three‑month low amid Middle East tensions

(Sharecast News) - US consumer sentiment weakened in March, according to a preliminary reading of the University of Michigan's consumer sentiment index, with the headline index slipping to 55.5 from 56.6 in February, though still coming in slightly ahead of expectations of 55. March's print marked the lowest reading in three months, with respondents citing the US-Iran military conflict as a key factor weighing on confidence, with rising gasoline prices having the most immediate impact on households.

Personal finance expectations fell 7.5% across the US, while inflation expectations were mixed - with year‑ahead expectations steady at 3.4%, ending a six‑month run of declines, while long‑term expectations ticked down from 3.3% to 3.2%.

Survey director Joanne Hsu noted that the survey had taken place between 17 February and 9 March, with sentiment weakening and inflation expectations growing following the outbreak of the US and Israel's war with Iran on 28 February.





Reporting by Iain Gilbert at Sharecast.com