The US consumer hasn’t felt this glum about the economy since November 2022, according to a survey by the University of Michigan. The latest reading on consumer sentiment, released in mid-March, showed a decline of 10.5% from February and fell below the Dow Jones consensus estimate.
Consumers now expect one-year inflation to jump to 4.9%, the highest level since November 2022. US Treasury Secretary Scott Bessent warned that there are “no guarantees” the administration’s actions won’t result in a recession. Despite this, stocks bounced on Friday, likely due to relief from tariff news rather than optimism about the markets.
The S&P 500 rose 2.13%, while the Dow Jones Industrial Average gained 1.65% and the Nasdaq Composite jumped 2.61%. However, weekly losses were reported across the three benchmarks. Asian markets also saw gains on Monday, with Japan’s Nikkei 225 rising around 1.2%.
The University of Michigan’s Survey of Consumers highlighted high levels of uncertainty around policy as a major factor in declining consumer sentiment. Meanwhile, China is taking steps to boost domestic consumption, announcing a “Special Action Plan” to revitalize the stock market.
Other notable news includes Klarna filing for an IPO and data on US economic indicators, including the upcoming retail sales report for February. The US economy’s performance also faces competition from China in nuclear fusion, with the two nations racing to develop grid-scale nuclear fusion energy.
Source: https://www.cnbc.com/2025/03/17/cnbc-daily-open-us-consumers-expect-inflation-to-jump-in-year-ahead.html