Consumer sentiment plummets amid trade and inflation pressures

Mace | 26th March 2025 | Uncategorised

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Consumer confidence in the US has plunged to its lowest level in over two years, as inflation and trade tensions grip the economy. New tariffs and regulatory upheaval are fuelling uncertainty across markets and households alike.

The University of Michigan’s Consumer Sentiment Index recorded a sharp decline in mid-March, falling to 57.9. The drop, one of the steepest in recent months, points to a significant shift in public confidence in the economic outlook, driven by a combination of rising inflation and heightened uncertainty surrounding trade policy. The latest data arrives amid ongoing turbulence in Washington, where the Trump administration has enacted a new round of tariffs targeting steel and aluminium imports. The 25% levy, which has already prompted retaliatory measures from key trading partners, is feeding broader concerns about price increases and supply chain disruptions. Analysts attribute a portion of the consumer sentiment decline to these developments, which are beginning to register in both retail pricing and manufacturing input costs. At the same time, inflationary pressures continue to weigh on households across the United States. With core inflation remaining stubbornly high, many consumers...

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