the university of michigan consumer confidence index was revised downward from an original estimate of 632 to 62 points in march on friday down by 5 points or 88 from february one broad takeaway sentiment among us consumers has dropped for the first time in four months but continues to remain 44 higher than a year earlier market reaction the spdr sp 500 etf trust spy which tracks the sp 500 index is trading 055 higher friday morning in the wake of the consumer confidence index and personal consumption expenditures economic data points the yield on the 10year benchmark treasury bond went down by 3 basis points to 355 friday morning the latest cme group fedwatch tool shows the market is split 5050 between a rate hike and a rate hold at the next fomc meeting in may highlights from um report all five subcomponents of the index decreased in march led by a substantial deterioration in consumer views of business conditions according to surveys of consumers director joanne hsu turmoil in the banking sector had limited impact on consumer sentiment which was already exhibiting downward momentum prior to the collapse of silicon valley bank read also janet yellen urges additional banking sector reforms to ensure financial stability inflation expectations for the coming year decreased from 41 in february to 36 in march the lowest figure since april 2021 but remain significantly above the 233 range observed in the two years preceding the pandemic according to um longrun inflation expectations were 29 for the fourth month in a row and have remained within the tight 2931 range for 19 of the previous 20 months benzingas take a decline in consumer confidence indicates the economy is in a latecycle phase and may foreshadow a slowdown high interest rates are beginning to erode consumer morale indicating the lagged effects of monetary policy are now starting to weigh on the real economy stickier expectations about future inflation make things more complicated as elevated interest rates may be deemed necessary by the fed for a long time even if the economy slows down or has a soft landing read next feds preferred inflation measure comes in cooler than expected as banking crisis complicates powells plan