US Consumer Sentiment Plummets to 2026 Low as War Drives Gasoline Costs Higher

By Editor, March 17, 2026

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American consumer confidence fell sharply in early March, with the University of Michigan preliminary index dropping to 55.5 from 56.6 in February, according to the March 13 release.

This marks the lowest reading so far this year and reflects growing household anxiety tied to the Middle East conflict and surging energy prices.

Gasoline costs have risen more than 21% since late February, reaching an average $3.63 per gallon nationwide. Survey respondents cited higher fuel prices and uncertainty over the Iran-related disruptions as primary drags on sentiment. The index’s expectations sub-component also deteriorated, signaling worries about future inflation and economic stability.

Economists note that consumer spending accounts for roughly 70% of US GDP. A sustained decline in confidence could translate into reduced retail and travel activity in the coming months.

While core inflation had been moderating earlier in the year, the energy shock is now threatening to push headline prices higher again. Federal Reserve officials are watching the data closely ahead of their next policy meeting.

The University of Michigan survey, one of the most closely followed gauges of household mood, has shown particular weakness in the “personal finances” and “business conditions” categories.

With oil markets remaining volatile above $100 per barrel, analysts expect the March final reading — due later this month — to remain under pressure unless energy prices ease. As of March 17, the war’s impact on everyday American wallets continues to dominate economic headlines