(Reuters) – The morale of American households deteriorated more than expected in March and inflation forecasts has skyrocketed while the customs duties announced by President Donald Trump threatens to increase prices and harm the economy.
The preliminary results of the monthly survey of the University of Michigan show that its confidence index fell to 57.9 in March after 64.7 in February.
Economists and analysts interviewed by Reuters provided an average of a figure of 63.1.
The index erased all the gains recorded after Donald Trump’s victory in the November presidential election.
Since then, the President has imposed a series of customs rights on the White House on a wide range of products from some of its main business partners, such as Canada, China and the European Union (EU), which then took retaliatory measures, raising fears of a trade war with harmful consequences for the economy.
Anticipated inflation by a year of one year increased at 4.9% in March, compared to 4.3% in February, while over the next five years, consumers plan a price increase of 3.9%, against 3.5% a month earlier.
The component of consumer judgment on their current situation also decreased to 63.5 after 65.7 in the previous month.
That of the prospects also fell in March at 54.2, against 64.0 a month earlier.
(Written by Lucia Mutikani; Mara Vîlcu and Diana Mandiá, edited by Blandine Hénault)
Copyright © 2025 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
