University of Michigan’s latest survey revealed that consumer sentiment in the United States fell unexpectedly in March, marking the first decline in four months. According to the survey, the Consumer Sentiment Index fell to 63.4, down from 67.0 in February and below analysts’ expectations of 67.0.
The survey also showed a drop in the current economic sentiment index, which fell to 66.4, while the index of sentiment over the next six months dropped to 61.5. Additionally, consumers expect inflation to rise 3.8% over the next year, down from 4.1% in the previous month’s survey.
Regarding long-term expectations, consumers in the United States predict inflation to hit 2.8% over the next five years, which is lower than last month’s poll, which predicted 2.9%.
The decrease in consumer sentiment is a matter of concern for the US economy as consumer spending is a key driver of economic growth.