Consumer confidence slips sharply
German consumer sentiment fell to a new low for the year in April, and U.S. consumer sentiment recently hit its lowest level in 70 years in some measures amid Middle East tensions and higher fuel and mortgage costs. Both reports suggest household uncertainty and affordability pressures are intensifying across markets. (esmmagazine.com) (kshb.com)
Households in Germany and the United States are turning markedly more cautious, with April surveys showing confidence sliding as energy costs and inflation fears rise. (einzelhandel.de) (sca.isr.umich.edu) In Germany, the German Retail Association, or Handelsverband Deutschland, said on April 7 that its April consumer barometer fell to the lowest level of 2026 so far. The group said planned saving increased noticeably from March and a recovery in private consumption was still not in sight. (einzelhandel.de) A separate German measure, the GfK Consumer Climate published with the Nuremberg Institute for Market Decisions, put April sentiment at minus 28.0, down 3.2 points from a revised minus 24.8 in March. The institute said inflation fears linked to the Iran war were damping income expectations. (nim.org) In the United States, the University of Michigan’s preliminary April sentiment index fell to 47.6 from 53.3 in March, a 10.7% monthly drop. Current conditions fell to 50.1 and expectations dropped to 46.1. (sca.isr.umich.edu) Michigan survey director Joanne Hsu said consumer sentiment had fallen about 11% this month and was about 9% below April 2025. The survey said 98% of interviews were completed before the April 7 announcement of a temporary cease-fire, so the reading mostly captured views formed during the prior run-up in prices and uncertainty. (sca.isr.umich.edu) The same U.S. survey showed year-ahead inflation expectations jumping to 4.8% from 3.8% in March, while long-run expectations rose to 3.4% from 3.2%. Respondents also reported worse buying conditions for cars and other durable goods because prices were high. (sca.isr.umich.edu) Those worries were reinforced by fresh price data. The U.S. Consumer Price Index rose 0.9% in March and 3.3% over 12 months, according to the Bureau of Labor Statistics. (bls.gov) Borrowing costs have also stayed elevated. Freddie Mac said the average 30-year fixed mortgage rate was 6.37% as of April 9, down from 6.46% a week earlier but still high enough to keep pressure on affordability. (freddiemac.com) That pressure is showing up beyond household surveys. The National Association of Home Builders and Wells Fargo housing market index fell four points to 34 in April, the lowest since September 2025, as builders cited higher mortgage rates, rising material costs and broader economic uncertainty. (usnews.com) Both sets of April readings point to the same problem: consumers are hearing that inflation is easing in some places, but they are still facing expensive energy, costly credit and weaker confidence in their own finances. (einzelhandel.de) (sca.isr.umich.edu)
