US consumer sentiment plunged to a nearly 2-1/2-year low

US consumer sentiment plunged to a nearly 2-1/2-year low in March and inflation expectations soared amid worries that President Donald Trump's sweeping tariffs, which have ignited a trade war, would boost prices and undercut the economy.

The deterioration in sentiment and inflation expectations reported by the University of Michigan Surveys of Consumers on Friday was across political party affiliation, with consumers saying "frequent gyrations in economic policies make it very difficult for consumers to plan for the future”, Reuters reported.

The University of Michigan said its Consumer Sentiment Index dropped to 57.9, the lowest level since November 2022, from a final reading of 64.7 in February. Economists polled by Reuters had forecast the index falling to 63.1.