MARCH 30, 2026 – – CONSUMER CONFIDENCE FALLS WITH WAR
Consumer confidence in March hit a three-month low as fears about the war increased uncertainties about rising inflation and the economic outlook. With oil prices up over 50 percent in the last month, consumer spending has weakened along with the stock market; this, with the labor market slowing, expectations for economic growth are deteriorating.
Consumer sentiment fell to 53.3 in March, the lowest reading since December, down from 56.6 last month. It is nearing the record low which was seen in June 2022 when inflation skyrocketed.
The long-term outlook is not as dire as the short-term one. Consumers are hopeful the war will not persist too long, and gas prices will fall back down to levels seen earlier this year. Consumers’ inflation expectations for the next year have risen from 3.4 percent at the beginning of March to 3.8 percent. But long-term inflation (over the next five years) dropped slightly to 3.2 percent from 3.3 percent in February.