ToplineSurging gas prices and “volatile” financial markets brought on by the Iran war helped dampen Americans’ views on the U.S. economy to a three-month low, according to a widely tracked survey released Friday by the University of Michigan. A survey found middle-class Americans were “buffeted” by surging gas prices and “volatile” financial markets brought on by the Iran war.SOPA Images/LightRocket via Getty ImagesKey FactsConsumer sentiment—a monthly survey of Americans’ views on the economy—dropped to 53.3 in March, the University of Michigan reported, down from a preliminary reading of 55.5 and an expected reading of 54.2, according to FactSet.That’s the lowest reading for the survey since December, when consumer sentiment ticked down to 52.9.Values below the survey’s historical benchmark of 100 correspond with growing economic pessimism among Americans, and any reading above—which last occurred in 2018—points to broader optimism.Americans with middle and higher incomes and stock wealth “buffeted by both escalating gas prices and volatile financial markets” expressed “particularly large drops in sentiment,” Joanne Hsu, the survey’s director, said in a statement.How Do Americans Feel About The Future?“The persistence of high prices continues to be the dominant factor for consumer views of the economy,” Hsu said, adding 47% of consumers said prices are negatively impacting their personal finances. Consumers expect prices to rise 3.8% over the next year, up from 3.4% in February, marking the largest single-month increase since April 2025. Americans’ views on their personal finances in the next year plunged by 10%, while their short-term economic confidence dropped 14%, Hsu said. Long-term expectations were “more subdued,” according to Hsu, who said this may suggest consumers don’t anticipate negative developments to persist.Big Number$3.97. That’s the average price for a gallon of gas in the U.S. as of Friday, nearly $1 above the average recorded last month, according to AAA. Gas prices last rose above $4 in 2022.What To Watch ForThe Conference Board will publish its consumer confidence index report, a similar reading on economic confidence that includes Americans’ views on the job market, on March 31. Consensus analyst estimates suggest the survey will report a further decline in economic confidence after a slight improvement in February, according to FactSet. The think tank’s previous report cited upbeat views on the job market and incomes, even as rising prices and inflation “remained at the top of consumers’ minds,” chief economist Dana Peterson said. Federal data later indicated a further decline in the job market in February: The U.S. shed 92,000 nonfarm jobs as the unemployment rate rose to 4.4%.Further ReadingForbesEconomic Confidence Weakened In March As Iran War ‘Erased’ GrowthBy Ty Roush