Consumer attitudes soured in March alongside slumping markets and growing concern about a possible recession, University of Michigan survey data on Friday showed. Sentiment worsened more than economists expected.

The figure marked the third consecutive month of dampening consumer attitudes, data showed.

Expectations about future economic conditions worsened in a slew of key areas, including personal finances, labor markets, inflation and stock markets, the survey said.

Consumer sentiment soured among both Democrats and Republicans, though it dropped more among Democrats, data showed.

On Thursday, the S&P 500 closed down more than 10% since a peak attained last month, meaning the decline officially qualified as a market correction. It marked the index’s first correction since October 2023.

The major stock indexes recovered some losses in early trading on Friday.

Consumers expect the inflation rate to rise to 4.9% over the next year, according to the survey, which marks a significant jump in year-ahead inflation expectations compared to survey results in February.

The current inflation rate stands at 2.8%, nearly a percentage point higher than the Federal Reserve’s target of 2%.

President Donald Trump’s tariffs last week set off an escalating global trade war. The U.S. slapped 25% tariffs on Mexico and Canada, some of which were delayed. Trump also imposed a 10% tariff on China, doubling taxes on Chinese imports to 20%.

Trump’s 25% tariffs on all imported steel and aluminum products took effect on Wednesday.

The array of duties on imported goods prompted retaliatory measures from China, Canada and the European Union.

Tariffs of this magnitude are widely expected to increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers.

Higher prices and looming economic uncertainty could scare off consumers, experts previously told ABC News. Consumer spending accounts for about two-thirds of U.S. economic activity.

Goldman Sachs last week hiked its odds of a recession from 15% to 20%. Moody’s Analytics earlier this week pegged the probability of a recession at 35%.

This is a developing story. Please check back for updates.