March 2025 consumer sentiment in the U.S. experienced a significant decline, dropping 11% and marking the third consecutive monthly decrease. This drop reflects widespread uncertainty over economic policies and concerns about finances, jobs, inflation, and market stability. Despite stable inflation and unemployment rates, the decline in consumer sentiment indicates a growing unease among consumers. Retail sales saw a modest increase of 3.9% year-over-year yet fell 0.5% month-to-month. The housing market showed signs of a slowdown, with new home sales dropping 10.5% from December. Additionally, student loan defaults are anticipated to rise as pandemic-related payment pauses end, potentially impacting millions of consumers' credit ratings. With total household debt reaching $18.04 trillion, the financial strain may increase.
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