10:21 AM EDT, 03/27/2026 (MT Newswires) -- The University of Michigan consumer sentiment index was revised downward Friday to a reading of 53.3 for March from the 55.5 print in the preliminary estimate, compared with expectations for a smaller downward revision to 54.0 in a survey compiled by Bloomberg.

That was lower than the final reading of 56.6 in February.

The current conditions index was also revised down to 55.8 from a 57.8 preliminary estimate, now lower than the 56.6 reading in February, while the expectations index was revised down to 51.7 from 54.1. The index was 56.6 in February.

Respondents expected a 3.8% inflation rate over the next year, up from 3.4% in February, and 3.2% annual inflation over the next five years, down from 3.3% in February.

"Consumer sentiment fell back 6% this month to its lowest level since December 2025," Michigan said, adding that respondents expect only a short-term fall.

However, if Iran war continues or rising energy prices increase overall inflation, the expectations might change, Michigan said.

The twice-monthly Michigan Sentiment index measures consumer sentiment early in the current month (the preliminary estimate) and is then revised later in the month (the final estimate).

The headline index is a combination of the current assessment and expectations for the near future. An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.