The feeling of consumers took another hit in March when concerns intensified on inflation and a stock market which collapses, according to the latest survey on the feelings of the University of Michigan published on Friday.
The investigation displayed a Reading in the middle of the month of 57.9which represents a decrease of 10.5% compared to February and was below the estimate of the consensus of Dow Jones for 63.2. Reading was 27.1% lower than a year ago and was the lowest since November 2022.
While the current conditions index dropped by 3.3% less serious, the measurement of expectations for the future was reduced by 15.3% on a monthly basis and 30% compared to the same period in 2024.
In addition, the fears have grown up where inflation is directed while President Donald Trump institutes prices against American trade partners. New aluminum and steel tasks entered Wednesday, and the president this week also threatened 200% of European Union alcohol prices after the EU hit American whiskey and other goods with 50% samples.
One -year prospects increased to 4.9%, up 0.6 percentage points compared to February and the highest reading since November 2022. By five years, the prospects rose to 3.9%, up 0.4 percentage points for the highest level since February 1993.
Stocks are largely brushed The report, in detention in positive territory, while the yields of the treasury increased.
Although the measure is often subject to the disparities between the parties, those responsible for the investigation said that the feeling had dropped through partisan lines as well as almost all demographic data.
“Many consumers have cited the high level of uncertainty concerning policy and other economic factors; frequent giations in economic policies make it very difficult for consumers to plan for the future, whatever the political preferences,” said the director of the survey, Joanna HSU. “Consumers of the three political affiliations agree that the prospects have been weakened since February.”
Expectations have dropped by 10% for Republicans, 24% for Democrats and 12% for the self -employed, added HSU. The overall feeling has dropped by 22% since December.
Inflation prospects contradicts reports earlier this week showing that consumer prices have increased less than expected while wholesale prices were stable in February.
The markets are largely expecting the federal reserve, which aims at an inflation rate of 2%, remains pending during its end of its two -day meeting on Wednesday. The merchants, however, are prices of 0.75 percentage points of interest at the end of the year, from June, according to the pricing of the gauge of the future of the CME group.
