Consumer mood sours
Consumer sentiment hit a record low while inflation surged, with recent coverage pointing to broad unease about the economy and high petrol costs. Reporters highlighted that inflation rose sharply — the biggest jump since 2022 — and that worries are showing up across age and income groups. (retaildive.com, businessinsider.com)
U.S. consumer sentiment fell to a record low in early April, even as inflation sped up sharply and gasoline prices jumped. (umich.edu) The University of Michigan’s preliminary sentiment index dropped to 47.6 from 53.3 in March, the weakest reading in the survey’s 74-year history. Its current-conditions gauge fell to 50.1, and its expectations gauge dropped to 46.1. (umich.edu) The survey’s director, Joanne Hsu, said sentiment fell across age, income, and political groups, and that one-year expected business conditions plunged about 20 percent. She said assessments of personal finances fell about 11 percent as consumers reported more concern about high prices and weaker asset values. (umich.edu) Inflation data landed the same day with a fresh jolt: the Consumer Price Index rose 0.9 percent in March after a 0.3 percent increase in February. Over the 12 months through March, prices were up 3.3 percent, compared with 2.4 percent a month earlier. (bls.gov) Energy drove most of that increase. The Bureau of Labor Statistics said the energy index rose 10.9 percent in March, while gasoline surged 21.2 percent and accounted for nearly three quarters of the monthly increase in overall consumer prices. (bls.gov) That jump showed up quickly at the pump. The American Automobile Association listed the national average for regular gasoline at $4.118 a gallon on April 14, up from $3.675 a month earlier and $3.184 a year earlier. (aaa.com) Consumers also raised their own inflation forecasts. In the Michigan survey, expected inflation over the next year rose to 4.8 percent in April from 3.8 percent in March, while long-run inflation expectations edged up to 3.4 percent from 3.2 percent. (umich.edu) The April survey was taken before many households had time to absorb the April 7 cease-fire announcement tied to the Iran conflict. Michigan said 98 percent of interviews were completed before that date, and Hsu said expectations could improve if supply disruptions ease and gas prices moderate. (umich.edu) The next test comes on April 24, when the University of Michigan publishes its final April reading. That update will show whether lower fuel costs and calmer markets changed the mood after a week that pushed confidence to a new low. (umich.edu)
