Consumer sentiment hits record low
The University of Michigan’s April consumer‑sentiment index fell to 47.6, the lowest reading in the survey’s history, with analysts pointing to heightened price anxiety as a key explanatory variable. Observers note that the drop sits below historical thresholds associated with spending contractions and that gasoline and price concerns are prominent drivers. (gelliottmorris.com)
U.S. consumer sentiment fell to 47.6 in early April, the lowest reading in the University of Michigan survey’s history. (sca.isr.umich.edu) That preliminary April reading was down from 53.3 in March and below economists’ 52.0 forecast. The survey’s current-conditions measure fell to 50.1, and expectations dropped to 46.1. (sca.isr.umich.edu; tradingeconomics.com) University of Michigan survey director Joanne Hsu said sentiment fell across age, income and political groups. She said one-year business-condition expectations dropped about 20%, while views of personal finances fell about 11%. (sca.isr.umich.edu) The survey tracks how households feel about their finances, buying conditions and the economy. Those readings matter because consumer spending makes up most United States economic output, and sentiment often weakens before households pull back on discretionary purchases. (fred.stlouisfed.org; maps.semcog.org) April’s drop was tied to price fears as much as headline growth. Year-ahead inflation expectations jumped to 4.8% from 3.8% in March, the largest one-month increase since April 2025, while five-year expectations rose to 3.4%, the highest since November 2025. (sca.isr.umich.edu; tradingeconomics.com) Gasoline was a visible part of that shock. The Bureau of Labor Statistics said the gasoline index rose 21.2% in March, the biggest monthly increase since the series began in 1967, and AAA put the national average for regular gas at $4.125 on April 12, 2026. (bls.gov; gasprices.aaa.com) Hsu said open-ended responses showed many consumers blaming the Iran conflict for worsening economic conditions. She also said 98% of interviews were completed before the April 7 temporary cease-fire announcement. (sca.isr.umich.edu) That timing leaves room for the final April reading, due April 24, to look different if gas prices ease and supply worries fade. For now, the survey shows households entering mid-April more worried about prices than at any point in the index’s seven-decade history. (sca.isr.umich.edu; tradingeconomics.com)
