The University of Michigan (UM) has reported that U.S. consumers are becoming more concerned about the state of the economy due to the ongoing Iran war and rising gas prices. The Consumer Sentiment Index fell to 53.3% for its final reading in March, down 5.8% from February and down 6.5% from where it was a year ago. Consumer sentiment fell to its lowest reading since December 2025. The survey also found that consumers are less optimistic about the future of the economic future than they are about the present. The decline in consumer sentiment was seen across age and political party, with middle- and higher-income consumers particularly affected by rising gas costs and tensions around the Strait of Hormuz. The University ofMichigan's survey also revealed that year-ahead inflation expectations rose to 3.8%, the largest one-month increase since April 2025.