US Consumer Sentiment Plummets to Three-Month Low as Gas Prices Surge Above $4.50

Key Points

• University of Michigan consumer sentiment index fell to three-month low in March
• Gas prices have surged above $4.50 per gallon across the US
• Consumer pessimism spread across all age groups, political parties, and income levels
• Financial markets hit new 2026 lows as selloff continued

Full Details

Americans' confidence in the economy fell to a three-month low in March as surging gas prices and volatile financial markets linked to the Iran war weighed heavily on consumer sentiment, according to a widely tracked survey released by the University of Michigan on March 27. The survey found that middle-class Americans were "buffeted" by rising energy costs and stock market volatility. Gas prices have soared past $4.50 per gallon in many areas, adding to household expenses at a time of heightened economic uncertainty. Consumer expectations matched economic calculations showing the Iran conflict would cause higher inflation. The sentiment drop occurred across all age groups, political parties, and income levels, painting a bleak picture of how Americans are coping with the economic fallout from the Middle East conflict. Financial markets extended a sharp sell-off at the end of the week, hitting a new low for 2026, as the Iran war continued to drive anxiety among investors, businesses, and consumers.