The Digester

Consumer sentiment falls to 55.5 in early March as Middle East war lifts gas prices

Mar 13th 2026

A University of Michigan preliminary reading shows consumer sentiment at 55.5 in early March, slipping as the US-Israeli strikes on Iran and higher gas prices pushed down expectations for personal finances while inflation expectations remained elevated.

  • University of Michigan preliminary Index of Consumer Sentiment dropped to 55.5 in early March, the lowest reading so far this year.
  • The survey ran Feb 17 to Mar 9 and was half completed when US-Israeli strikes on Iran began, with interviews after the strikes erasing earlier improvements.
  • Higher crude oil from disruptions around the Strait of Hormuz pushed average gas prices up about $0.60 in the past month, according to AAA.
  • Consumers across incomes, ages and political affiliations reported a 7.5% decline in expectations for their personal finances.
  • Year-ahead inflation expectations held at 3.4% and long-term expectations edged down to 3.2%, both above pre-pandemic levels.
  • The preliminary reading also reflected the Supreme Court decision striking down tariffs imposed under IEEPA.

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