Consumer sentiment plunges
The University of Michigan’s consumer‑sentiment index fell to 47.6 in April, the lowest reading in the survey’s history, with year‑ahead inflation expectations rising to about 4.8%. (timesnownews.com) Coverage links the drop in confidence to inflation fears and geopolitical uncertainty stemming from the Iran conflict. (fox9.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, cnbc.com) The preliminary April reading was down from 53.3 in March, a 10.7% one-month drop. Consumers also said they expected prices to rise 4.8% over the next year, up a full percentage point from March. (cnbc.com, tradingeconomics.com) The University of Michigan survey tracks how households view their finances, buying conditions, and the broader economy. Joanne Hsu, who directs the survey, said comments showed many consumers blamed the Iran conflict for worsening economic conditions. (sca.isr.umich.edu, cnbc.com) The timing matters because the survey was released on Friday, April 10, but mostly captured views formed in March. Hsu said most interviews were completed before the April 7 ceasefire, so the results largely reflect the period when gas prices and market volatility were still climbing. (cnbc.com) Inflation data released the same day showed why households were rattled. The Consumer Price Index rose 0.9% in March and 3.3% from a year earlier, with gasoline driving much of the monthly increase. (bls.gov, bls.gov) Michigan’s March survey had already shown weakening confidence across age groups and political parties. It also found especially large declines among middle- and higher-income households and people with stock-market wealth, who were hit by rising gas prices and volatile financial markets after the Iran conflict began. (sca.isr.umich.edu) The April report suggests those worries intensified fast. CNBC reported that the survey’s current-conditions and expectations measures both posted double-digit monthly declines, and five-year inflation expectations rose to 3.4%. (cnbc.com) Hsu said expectations could improve if consumers become confident that supply disruptions have ended and gas prices moderate. For now, the record-low reading shows households entered mid-April expecting a weaker economy and faster price increases than they did a month earlier. (cnbc.com)
