The attitudes of consumers were grouped in March together with the fallen markets and the growing concern for a possible recession, showed Friday data from the Michigan University Survey. The feeling worsened more than economists expected.
The figure marked the third consecutive month of damping of consumer attitudes, according to the data.
Expectations about future economic conditions worsened in a series of key areas, which include personal finances, labor markets, inflation and stock markets, according to the survey.
The feeling of consumers looked between the Democrats and the Republicans, although it was more reduced among the Democrats, according to the data.
Thursday, the S& P 500 closed more than 10% since a peak reached last month, which means that the decrease was officially described as a market correction. It marked the first correction of the index since October 2023.
The main rates of shares recovered some losses in the first operations on Friday.
Consumers expect the inflation rate to increase 4.9% during the next year, according to the survey, which marks a significant jump in the inflation expectations of the year compared to the survey results in February.
A client store in a grocery store, on February 12, 2025 in Austin, Texas.
Brandon Bell/Getty images
The current inflation rate is 2.8%, almost a percentage point higher than the 2%federal reserve objective.
President Donald Trump’s tariffs last week triggered a growing global commercial war. The United States slapped 25% of tariffs in Mexico and Canada, some of which were delayed. Trump also imposed a 10% rate to China, doubleing taxes on Chinese imports at 20%.
Trump 25% tariffs on all imported steel and aluminum products entered into force on Wednesday.
The variety of tariffs on imported goods caused reprisal measures of China, Canada and the European Union.
It is widely expected that tariffs of this magnitude increase the prices paid by American buyers, since importers generally transmit a part of the cost of those higher taxes for consumers.
The highest prices and the imminent economic uncertainty could scare consumers, experts previously said to ABC News. Consumer expenditure represents approximately two thirds of the economic activity of the United States.
Goldman Sachs last week raised his chances of a recession from 15% to 20%. Moody’s Analytics earlier this week linked the probability of a 35%recession.
This is a development story. Consult the updates again.
