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Consumer sentiment plunges in early March, inflation expectations soar
Consumers are becoming sharply more pessimistic about the economic outlook, according to a preliminary reading of the University of Michigan's sentiment survey for March.
Why it matters: The mix of new tariffs, federal cutbacks, erratic policy, and a slumping stock market is dampening American's optimism, which risks generating self-fulfilling economic weakness in the event consumers act on their newfound sense of worry.
- Lower sentiment was strikingly broad-based, seen "across all groups by age, education, income, wealth, political affiliations, and geographic regions," survey director Joanne Hsu said in an announcement.
By the numbers: Overall consumer sentiment fell 11% in the month to 57.9, the third straight month of decline. That level is the lowest since the fall of 2022. when Biden-era inflation was still running high.
- The decline was sharpest among Democrats, whose expectations declined 24%, but sentiment among Republicans fell 10% as well.
- Inflation expectations also surged, with survey respondents now expecting inflation over the next year of 4.9%, up from 4.3% a month ago
Of note: Long-term inflation expectations also surged, to 3.9% in March from 3.5% in February. That will be particularly worrying to Federal Reserve officials, who may be reluctant to respond to any weakening in the economy due to fears that inflation expectations are coming unmooored.
- That was the largest one-month rise in long-term inflation expectations since 1993.
What they're saying: "While current economic conditions were little changed, expectations for the future deteriorated across multiple facets of the economy," Hsu wrote, "including personal finances, labor markets, inflation, business conditions, and stock markets.
- "Many consumers cited the high level of uncertainty around policy and other economic factors; frequent gyrations in economic policies make it very difficult for consumers to plan for the future, regardless of one's policy preferences," she aded.
Yes, but: The preliminary reading of the Michigan survey, released mid-month, is based on a relatively small sample of around 420 households.
- The final March number, based on about 800 survey respondents, is to be released March 28.
Trump may not have a new Air Force One yet, but the president still has these high-tech VIP aircraft
Joe Raedle/Getty Images
- President Donald Trump swapped his private jet for VIP government aircraft, including Air Force One.
- Government and military officials have access to private jets, helicopters, and a "flying war room."
- Trump hopes to receive a new fleet of Air Force One 747s before the end of his term in 2029.
President Donald Trump has once again ditched his prized personal private jet for an arsenal of VIP government aircraft.
The most famous is Air Force One, a pair of highly modified Boeing 747 double-deckers that have flown every president since George H. W. Bush beginning in 1990.
But there are manyΒ lesser-known government VIP aircraft, including a flying command center, smaller Boeing narrowbodies, private jets, and helicopters responsible for shuttling the president and vice president, military and congressional leaders, cabinet members, and more. Members of the press are also regularly invited on board.
Branches of the US military maintain and operate the fleet of aircraft, and military pilots are employed for the highly specialized missions. The aviators need thousands of hours of flying and combat experience.
The fleet is poised to change as the Trump Administration hopes to acquire new 747 planes to replace the aging Air Force One collection, though that may not happen until after his second term.
AP Photo/Ben Curtis
Air Force One has flown US presidents for decades β though the codename generally refers to any aircraft carrying the president. According to the White House, it is equipped with armored plating, missile defenses, midair refueling systems, and 4,000 square feet of floor space across three different levels.
This includes bedrooms, conference rooms, a flying Oval Office, a medical center complete with a doctor, and kitchens.
There are rooms onboard for administration members, such as advisors and the Secret Service, as well as the press and other invited guests.
PATRICK T. FALLON/AFP via Getty Images
During his first administration, Trump struck a $3.9 billion deal with Boeing to receive two new 747s to replace the now 35-year-old fleet. The agreement saw Boeing take on any additional costs, which now total over $2 billion.
Boeing did not meet the initially expected delivery date of 2024 amid its recent quality and manufacturing problems. The Wall Street Journal reported in December the 747 deliveries may not happen until 2029 or later β and Trump isn't happy about it.
Trump has tasked senior advisor Elon Musk with fast-tracking the Boeing deliveries in hopes he can enjoy them before leaving office.
BRANDON BELL/POOL/AFP via Getty Images
A fleet of C-32 aircraft, which are modified Boeing 757 passenger jetliners, carry people like the vice president, the first lady, and members of the Cabinet and Congress.
These are dubbed "Air Force Two" when the vice president is onboard.
According to the US Air Force, the plane is divided into four sections. Three contain business or first-class seats, conference rooms, galleys, lavatories, and a communication center.
A separate section is a stateroom for the main guest and includes a private lavatory, a bed, and a changing room, among other personal necessities.
Fabrizio Gandolfo/SOPA Images/LightRocket via Getty Images
Combatant commanders, cabinet members, and Congresspeople can fly in the US fleet of customized Boeing 737-700 business planes. The USAF's models β the C-40B and C-40C β have advanced performance capabilities, traffic avoidance systems, and weather radar.
According to the USAF, the C-40B is built as an "office in the sky" for top military and government officials and has special communications systems that support WiFi, video, audio, and other transmission equipment.
The C-40C lacks the specialized comms but can be configured with a larger passenger cabin with seats for 42 to 111 people. The Navy has a C-40A "Clipper" 737, but it rarely carries high-ranking government officials.
JULIA NIKHINSON/AFP via Getty Images
The US Marine Corps HMX-1"Nighthawks" manages a fleet of helicopters that are dubbed "Marine One" when the president is on board.
The helicopters adorn a recognizable green-and-white livery and have anti-missile systems and soundproof interiors.
Two models perform presidential missions: the 14-passenger Sikorsky VH-3D Sea King and the 11-passenger VH-60N Blackhawk. The Blackhawks can be folded into military cargo aircraft and transported with the president to support them at their destination.
Kentavist P. Brackin/DVIDS/US Air Force
Branches of the military operate customized US-made Gulfstream C-37 twin-engine aircraft to transport high-ranking government and Department of Defense officials.
The USAF's C-37B variant can carry the vice president and cabinet members. When carrying the vice president, the Gulfstream would become Air Force Two.
These Gulfstreams have luxe furnishings and advanced safety and security technologies, such as enhanced autopilot and modern vision systems for poor-visibility weather conditions.
U.S. Air Force photo by Tech. Sgt. Codie Trimble
The E-4B "Nightwatch" is primarily an airborne operations center that can carry the president, the secretary of defense, the joint chiefs of staff, and other needed personnel in case of a national emergency, such as a nuclear war.
Dubbed the "flying war room" or the "doomsday plane," the fleet is stationed in Omaha, Nebraska and one is available 27/4. The E-4B has a conference, communications, and briefing room, other work areas, and accommodations.
Like Air Force One, the E-4B can refuel midair to allow it to fly nonstop for days. The distinctive hump on the top holds specialized communications and satellite equipment.
In addition to wartime, the E-4B is used by SecDef for international travel and to support the Federal Emergency Management Agency during natural disasters.
Airman 1st Class Briana Cespedes/USAF
The military has a fleet of other large transport aircraft available for troops, VIP military officials, and cargo to support the president and other government staff, disaster relief, and humanitarian aid.
These include the C-130 Hercules, the nose-loading C-5 Galaxy, and the C-17 Globemaster. Multiple branches also operate smaller private jets, like the C-20G Gulfstream and the C-21 Learjet.
The customized Gulfstream and Learjet largely carry military officials and other dignitaries, though the latter also ferries medical patients for the USAF. Meanwhile, the C-17 can transport Marine One.
I ate every exclusive menu item at the first Applebee's and IHOP hybrid restaurant and ranked them from worst to best
Erin McDowell/Business Insider
- I attended the opening of the first Applebee's and IHOP dual-branded restaurant in Seguin, Texas.
- I tried five exclusive dishes you won't find at stand-alone Applebee's or IHOP restaurants.
- The Buffalo chicken omelet and sirloin steak and eggs both impressed me in terms of taste and value.
I recently attended the grand opening of the Applebee's-IHOP dual-branded restaurant in Seguin, Texas, the first of its kind in the US.
Featuring favorites from both chain restaurant menus, Applebee's-IHOP also serves five exclusive menu items you'll only find at the hybrid restaurants.
"For our guests, it enables a lot more choice," Dine Brands CEO John Peyton told Business Insider of the dual-branded restaurant concept. "We already see overseas, they're ordering from both sides of the menu. The other thing it does for our guests is we've created items on this menu that are only available at the dual-branded restaurants."
From a stacked breakfast burger to a loaded Buffalo chicken omelet, every exclusive item blended the two menus together, and I hope that when the chain expands across the country, more people will be able to try them.
The company said it plans to open 14 more dual-branded locations in the US in the next year, both by updating existing single-branded IHOP and Applebee's locations and building new locations that reflect the new Applebee's-IHOP brand.
Here's every exclusive menu item at the first Applebee's and IHOP hybrid restaurant, ranked from worst to best.
Erin McDowell/Business Insider
When I visit a chain restaurant, I almost never order a salad. I tend to gravitate toward heartier options like chicken tenders or classic burgers. However, I decided to give this exclusive menu item a shot, regardless.
The berry balsamic grilled chicken salad cost $14.49, excluding tax.
Erin McDowell/Business Insider
I thought the sliced red onion in the salad overpowered a lot of the other flavors, and the dressing was just a little too sour and tangy for my tastes.
The strawberries did taste fresh and added a hint of sweetness that cut through the tart notes of the dressing and red onion, but the red onion was just too much for me.
Erin McDowell/Business Insider
The strawberry waffle sundae includes two Belgian waffle pieces, glazed strawberries, vanilla ice cream, and whipped cream. It costs $2.99, excluding tax.
Erin McDowell/Business Insider
The waffles' crispy texture was balanced by the sweet and flavorful vanilla ice cream, while the strawberries added a tart bite to the dish.
Erin McDowell/Business Insider
The vanilla ice cream was thick and creamy, with a lot of flavor packed into a small bite.
Overall, I was impressed, especially given the low price point of this dessert.
Erin McDowell/Business Insider
Since Applebee's is primarily known for its burgers and IHOP for its breakfast, it made sense for the chains to combine for an elevated breakfast burger.
The burger cost $13.99, excluding tax.
Erin McDowell/Business Insider
The burger, which comes topped with hash browns, two slices of American cheese, two bacon strips, an over-easy egg, and poblano hollandaise sauce, reminded me of a classic bacon-egg-and-cheese breakfast sandwich.
The egg and bright, tangy poblano hollandaise sauce added moisture to this sandwich. The crispy bacon added a deep smoky flavor, balanced by a soft, fluffy bun. I would definitely order this again.
It was a standard breakfast sandwich kicked up a notch β paired with seasoned fries, this burger set me up for the day.
Erin McDowell/Business Insider
Inspired by the array of steaks available on the Applebee's menu, this twist on classic steak and eggs includes an 8-ounce sirloin steak, three eggs served any style, and two buttermilk pancakes.
It cost $19.99, excluding tax, making it the most expensive dish I tried.
Erin McDowell/Business Insider
The steak had a peppery crust on the outside but was juicy and cooked to a perfect medium. It was moist and flavorful β my only critique was that the sirloin steak wasn't the most tender.
Sirloin steak tends to be a tougher cut of meat compared to filet mignon or ribeye. I had to chew it quite a bit before swallowing. However, for less than $20 for the entire plate, perhaps that's to be expected.
I thought the eggs were buttery and moist, and practically melted in my mouth.
Erin McDowell/Business Insider
The pancakes, topped with a ball of butter, were fluffy and light. I also used the syrup available on my table.
I thought this entire plate was a massive portion. Between the 8-ounce steak, eggs, and side of pancakes, it could have easily fed two people.
Peyton said the company carefully considers portion size when determining the kind of value Applebee's and IHOP offer customers.
"Value's got a very specific definition for us, which is great food, a really generous portion, great service at an accessible price," he said. "We have to focus on those four things to yield to our guests more than ever in 2025."
Erin McDowell/Business Insider
Peyton and the hybrid restaurant's franchisee partner, Danny Hakim, both mentioned the new menu item when they sat down with BI at the grand opening.
As a huge fan of Buffalo chicken β and after trying chicken tenders at multiple chain restaurants β I was interested to see how Applebee's combined its tenders with a breakfast classic.
The loaded Buffalo chicken omelet costs $14.79, excluding tax. It's made with cut-up crispy chicken tenders, a four-cheese blend, ranch, and Buffalo sauce, and it's topped with even more chicken tender pieces.
Erin McDowell/Business Insider
The chicken pieces added just the right amount of crunch, while the tenders' breading was well-seasoned and packed even more flavor into each bite. The drizzle of ranch and Buffalo sauce added moisture to the dish.
Overall, this was a Buffalo sauce lover's dream.
Erin McDowell/Business Insider
This dish was decadent but also familiar. It combined the flavors I typically looked for at Applebee's β spicy and savory β with a buttery, breakfast favorite I might order from IHOP.
This menu item embodies what the hybrid restaurant is trying to achieve: a perfect symbiosis between the Applebee's and IHOP brands.