US consumer sentiment is deteriorating as inflation expectations surge:

The Consumer Sentiment Index fell -3.3 points in March, to 53.3, its lowest since December 2025.

The index is now below the 2008 Financial Crisis low and almost in-line with the 1980s recession bottom.

This comes as 1-year inflation expectations jumped +0.4 percentage points, to 3.8%, the largest monthly increase since April 2025.

~66% of consumer interviews were conducted after the start of the Iran War on February 28th, with those respondents reporting significantly worse sentiment and higher inflation expectations than those surveyed before that date.

The decline was broad-based across all age groups, with middle and higher-income consumers showing particularly large drops as surging gasoline prices and volatile financial markets weighed on confidence.

Consumer sentiment among Americans is at crisis levels.