Consumer Confidence Hits Historic Low, Highlighting Deep Political Divide

The University of Michigan reports a sharp drop in sentiment, with Democrats' economic outlook at a record low and fears of recession growing.

The University of Michigan Consumer Sentiment Index fell to 57.9 in March, its lowest level since 2022, driven largely by plummeting confidence among Democratic voters.
Democratic consumer expectations hit a record low of 28.2, reflecting fears about President Trump's economic policies, including tariffs and potential recession risks.
Republican sentiment remains significantly higher at 95.7, creating the largest-ever partisan gap in economic outlooks recorded by the survey.
Experts warn that partisan-driven economic pessimism could have real consequences, as declining confidence may lead to reduced consumer spending and slower economic growth.
Inflation expectations have also become polarized, with Democrats anticipating a sharp rise in prices, while Republicans foresee minimal inflation.