US Consumer Sentiment from January to March 2025: A Declining Trend

Consumer sentiment in the United States experienced a notable decline from January to March 2025, driven by growing concerns about tariffs, inflation, and economic uncertainty. This trend is reflected in several key indices and surveys.

January 2025

In January, the Consumer Sentiment Index stood at a level marking an increase from the previous month, as reported by Statista. This uptick was supported by a robust economy with low unemployment and stable inflation, as noted by McKinsey & Company.

February 2025

By February, consumer sentiment began to show signs of weakening. The University of Michigan's Consumer Sentiment Index was reported, with a Current Economic Conditions Index and an Index of Consumer Expectations, as detailed on the University of Michigan's website.

March 2025

In March, consumer sentiment plummeted further. The University of Michigan's Consumer Sentiment Index dropped, marking a third consecutive monthly decline and the lowest level since November 2022. This significant drop was driven by heightened uncertainty about economic policies and rising inflation expectations.

The Conference Board's Consumer Confidence Index also fell in March, reaching a multi-year low, with short-term expectations for income, business, and the job market dropping to a long-term low, as reported by The Conference Board. This decline reflects growing pessimism about future economic conditions and a heightened fear of recession.

In summary, US consumer sentiment experienced a substantial decline from January to March 2025, influenced by economic uncertainty, tariff concerns, and rising inflation expectations. These trends suggest a cautious outlook for consumer spending and economic growth in the near term.

Disclosure:

This article provides an analysis of US consumer sentiment trends from January to March 2025. The information presented is based on publicly available data and does not constitute investment advice or a solicitation to purchase or sell any securities.

Disclaimer:

• The author of this article is not a registered investment advisor or broker-dealer.
• No compensation, whether cash or non-cash, was provided for the preparation of this article.
• There are no material conflicts of interest related to the information presented in this article.

Important Note:

The views expressed in this article are based on general economic trends and should not be considered as personalized investment advice. Readers should consult with a financial advisor before making any investment decisions.

Sources:

• University of Michigan: Consumer Sentiment Index data for January to March 2025, available at https://data.sca.isr.umich.edu.
• McKinsey & Company: Insights on consumer optimism and spending trends in early 2025, available at https://www.mckinsey.com.
• Statista: Consumer Sentiment Index for January 2025, available at https://www.statista.com.
• The Conference Board: Consumer Confidence Index data for March 2025, available at https://www.conference-board.org.

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