Consumer sentiment hits record low

U.S. consumer sentiment fell to 47.6 in the preliminary April reading, the lowest level in the 74-year history of the University of Michigan survey. (sca.isr.umich.edu) The index was 53.3 in March and 52.2 in April 2025, while the current-conditions gauge fell to 50.1 and the expectations gauge dropped to 46.1. (sca.isr.umich.edu) Survey director Joanne Hsu said sentiment sank about 11% in April, with declines across age, income, and political groups. She said one-year expected business conditions fell about 20% and personal-finance assessments dropped about 11%. (sca.isr.umich.edu) Consumers also raised their inflation outlook sharply. Year-ahead inflation expectations jumped to 4.8% from 3.8% in March, and long-run expectations rose to 3.4% from 3.2%. (sca.isr.umich.edu) Gasoline was one of the clearest pressures on household budgets. Triple A said on April 9 that the national average for regular gasoline had climbed to $4.16 a gallon, up 8 cents in a week and the highest level since August 2022. (gasprices.aaa.com) Federal inflation data showed the same squeeze. The Consumer Price Index rose 0.9% in March and 3.3% from a year earlier, with the Bureau of Labor Statistics saying gasoline prices helped drive the increase. (bls.gov) The Michigan survey also captured a specific timing problem. Hsu said 98% of interviews were completed before the April 7 temporary cease-fire, so the preliminary reading mostly reflects the period when fuel markets were still reacting to the Iran conflict. (sca.isr.umich.edu) Hsu said expectations could improve if consumers become confident that supply disruptions have ended and gas prices moderate. The final April sentiment reading is scheduled for April 24 at 10 a.m. Eastern Time. (sca.isr.umich.edu)