Sentiment of acid consumer in the middle of a trade war, recession fears: Survey
Consumer attitudes deteriorated in March in addition to the declining market and increasingly worried about the possibility of recession, the University of Michigan survey data on Friday showed. Sentiment worsens more than expected by economists.
This figure marks the third month in a row from reducing consumer attitudes, the data shows.
Hope about the economic conditions in the future deteriorates in many major fields, including personal finances, labor markets, inflation and stock markets, the survey said.
Consumer sentiment deterioran between Democrats and Republican, although more down between Democrats, data shows.
On Thursday, S& P 500 closed more than 10% since the peak was achieved last month, which means the official decrease meets the requirements as a market correction. This marks the first correction of the index since October 2023.
The main stock index restores some losses in early trading on Friday.
Consumers hope that the inflation rate will rise to 4.9% over the next year, according to the survey, which marks a significant leap in annual inflation expectations compared to the survey results in February.
A shop customer at a grocery store, February 12, 2025 in Austin, Texas.
Brandon Bell/Getty Image
The current inflation rate reaches 2.8%, almost the percentage of points is higher than the federal reserve target of 2%.
President Donald Trump’s tariff last week triggered an increasing global trade war. The US slapped a 25% tariff in Mexico and Canada, some of them were delayed. Trump also imposed a 10% tariff on China, doubling tax on China’s import to 20%.
The 25% Trump tariff on all imported steel and aluminum products came into force on Wednesday.
Various duty of imported goods triggered retaliation steps from China, Canada and the European Union.
This size is widely expected to increase the price paid by US buyers, because importers usually deliver part of higher tax costs to consumers.
Higher prices and towering economic uncertainty can frighten consumers, experts previously told ABC News. Consumer expenditure contributes about two -thirds of US economic activities.
Goldman Sachs last week climbed a recession opportunity from 15% to 20%. Moody analysis earlier this week set a recession probability of 35%.
This is a developing story. Please check again for updates.
