The Conference Board has reported a slight uptick in US consumer confidence during March, defying expectations as soaring energy prices linked to the ongoing war in Iran continue to impact households nationwide.
Modest Confidence Increase Amid Economic Strain
According to data released on Tuesday, the consumer confidence index rose modestly to 91.8 in March, up from 91 in February. This incremental gain comes despite significant pressures from rising costs, including tariffs and spiking oil prices induced by the Middle East conflict.
Underlying Pessimism and Inflation Concerns
While the topline confidence reading showed resilience, the board noted increasing pessimism in other survey measures. Respondents expressed heightened concerns about inflation, with 12-month inflation expectations surging to levels last seen in August 2025, when anxiety over tariffs peaked.
Comments from consumers regarding oil, gas, and the war spiked significantly, reflecting widespread unease about the economic fallout from the Iran conflict.
Gas Prices Hit Milestone High
In a stark illustration of the crisis, US gas prices jumped past an average of $4 a gallon on Tuesday, marking the first time since 2022 that prices have reached this threshold. The war has caused fuel prices to soar worldwide, exacerbating financial strain for American consumers.
This development underscores the complex interplay between geopolitical events and domestic economic sentiment, as confidence inches upward despite palpable inflationary pressures.
