US consumer sentiment hits record low
- The University of Michigan said its final April consumer sentiment index fell to 49.8, an all-time low, as U.S. households stayed worried about inflation even after an Iran war ceasefire. - The survey’s preliminary April reading was 47.6, down 10.7% from March’s 53.3, while one-year inflation expectations jumped to 4.8% from 3.8%, the biggest monthly rise since April 2025. - Reuters said economists expect pricier gasoline and diesel to squeeze lower-income households first and slow consumption growth if energy costs stay elevated. (usnews.com)
U.S. consumer sentiment fell to a record low in April as households kept bracing for higher prices after the Iran war shock. (usnews.com) The University of Michigan said its final April sentiment index came in at 49.8, down from 53.3 in March and below Reuters’ 48.0 consensus forecast range. (usnews.com) Earlier in the month, the survey’s preliminary reading dropped even further, to 47.6, a 10.7% monthly decline and the lowest level in the survey’s history. (sca.isr.umich.edu) (cnbc.com) Consumers said they expected prices to rise 4.8% over the next year, up from 3.8% in March. Long-run inflation expectations also rose to 3.4% from 3.2%. (sca.isr.umich.edu) Joanne Hsu, who directs the survey, said the Iran conflict was shaping views mainly through higher gasoline and other prices. The survey said 98% of interviews were completed before the April 7 temporary ceasefire. (sca.isr.umich.edu) Reuters reported that the war disrupted shipping through the Strait of Hormuz, pushing up oil, gasoline, diesel, fertilizers, petrochemicals and aluminum. National average gasoline stayed above $4 a gallon in April, while diesel was well above $5. (usnews.com) The Michigan survey showed the drop was broad, cutting across age, income and political party. Consumers with stock-market investments also reported weaker sentiment. (sca.isr.umich.edu) (usnews.com) The expectations component fell to 46.1 from 51.7, and the current conditions gauge dropped to 50.1 from 55.8. Buying conditions for cars and other durable goods worsened as households cited high prices. (sca.isr.umich.edu) Economists told Reuters that sentiment does not map neatly onto spending, but higher fuel costs can still slow consumption by cutting into real disposable income. Oxford Economics said the pressure would land hardest on low- and middle-income households. (usnews.com) The next University of Michigan sentiment release is scheduled for May 22, 2026. For now, the April reading shows households remained focused on inflation even after the ceasefire headline. (fred.stlouisfed.org) (sca.isr.umich.edu)
