According to the University of Michigan survey data, American consumers' evaluations of their personal financial situation have declined by about 10%, and concerns about high prices continue to heat up. Conditions for purchasing durable goods have improved slightly, in part because consumers believe that completing such purchases now will help avoid future price increases. Consumer expectations for short-term business conditions deteriorated sharply due to renewed market concerns about high fuel prices and the possibility that a further escalation of trade disputes could spill over into the overall economy. Overall, the survey showed that respondents with different political positions generally believed that the outlook for the US economy had weakened compared to the beginning of the year. After a sharp drop in consumer confidence this month, confidence in the Republican camp fell 20% compared to January 2026, and the Democratic camp fell 13% during the same period. The inflation forecast for the next year rose from 4.0% last month to 4.6% this month, the highest level since June. Currently, this level is significantly higher than the 3.4% level in February before the start of the Iranian conflict, and it is also higher than the level for all months of 2024. Long-term inflation expectations rose slightly to 3.4%, ending three consecutive months at 3.3%. This forecast is still higher than the 2024 2.8% to 3.2% range.

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