Consumer sentiment hits low
University of Michigan consumer sentiment plunged to a record low of 47.6, a divergence that commentators pointed to as worrying given the S&P is only a few percent from its highs. The same social briefing cited a Bank of America survey where 58% of respondents expect Fed cuts and 46% expect ECB hikes, reflecting mixed expectations across regions (x.com).
U.S. consumer sentiment fell to 47.6 in early April, the lowest reading in the University of Michigan survey’s 74-year history. (sca.isr.umich.edu) The preliminary April reading was down from 53.3 in March and 52.2 a year earlier. The survey’s current conditions gauge fell to 50.1 from 55.8, and expectations dropped to 46.1 from 51.7. (sca.isr.umich.edu) Survey director Joanne Hsu said sentiment fell about 11% in April and extended a slide that began with the start of the Iran conflict. Reuters reported that one-year inflation expectations jumped to 4.8% from 3.8% in March. (sca.isr.umich.edu) (msn.com) The survey tracks how households view their finances, buying conditions and the economy. A reading below 50 means consumers are reporting weaker confidence than at the depths of many past downturns, even though stock prices have recovered much of their recent losses. (sca.isr.umich.edu) (cnbc.com) That split has become a live market question in April 2026: households are telling pollsters they feel worse, while investors have pushed the Standard & Poor’s 500 back into positive territory for the year after Monday’s rally. (sca.isr.umich.edu) (cnbc.com) Bank of America’s April 2-9 Global Fund Manager Survey showed 58% of respondents expect Federal Reserve rate cuts over the next 12 months, while 46% expect European Central Bank rate hikes. The same survey found a net 36% expect a weaker global economy. (boereport.com) (investinglive.com) Those answers point to a market that is pricing different inflation and growth paths on each side of the Atlantic. In the United States, investors are betting weaker growth will pull rates down; in Europe, a large share still sees inflation pressure strong enough to keep policy tight. (boereport.com) (investinglive.com) The next University of Michigan update is scheduled for Friday, April 24, at 10 a.m. Eastern. That release will show whether April’s record low was an early shock reading or the start of a deeper break between consumer mood and market prices. (sca.isr.umich.edu)
