The preliminary read on the March University of Michigan Consumer Sentiment Index fell to 57.9. That's down from the prior reading of 64.7 and lower than the 63.0 economists had been expecting. Catalysts Anchor Madison Mills breaks down the data in the video above.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
We are getting fresh econ data right now. University of Michigan consumer sentiment, the preliminary reading from March coming in 57.9 versus 63 expected. I just want to break this number for you here. This is the lowest reading since November of 2022. The median estimate of 63, forecasting range from 60 to 65 from 47 estimates here. Expectations index falling to 54.2 versus 64 last month. That's the lowest reading since July of 2022. So huge move to the downside here. The expected change in median prices during the next year rose to 4.9%. That means that people think that prices are going to rise by nearly 5% next year. The prior reading was just 4.3%. That is the highest inflation expectation since November of 2022. And the expected change in median prices in the next 5 to 10 years also rising to the highest level since February of 1993. Now, we've been talking about this consumer sentiment. It's not always a key data point because it's not something the Federal Reserve factors into their rate cutting cycle, but it matters a lot right now because there's been this question about whether or not we're seeing a consumer spending slowdown. And this data indicates a consumer that is worried about the path forward of inflation. Will we see consumers cutting back on spending off the back of this data, off the back of policy? That is what today's UMich numbers potentially paint a picture of. Of course, we're going to continue to cover these numbers for you.
