U.S. Consumer Sentiment Falls to Lowest Level in Three Years
March 27, 2020
As the nation deals with the coronavirus outbreak, American consumer confidence has plummeted. The University of Michigan’s consumer sentiment index fell to 89.1 in March, down from 101 in February. Economists had expected a drop to 90.
This is the fourth-largest monthly drop in the survey’s 50-year history, and the lowest level since 2016.
The index reading occurred before Congress passed the $2 trillion relief package, which includes individual payments of $1,200 to every American. An economist from the Survey of Consumers believes that the government’s actions may stop consumers from being more pessimistic, but real optimism will not return until the threat of the virus has subsided.