US Consumer Sentiment Lowest on Record

2026-04-24 14:11 By Joana Ferreira 1 min. read

The University of Michigan’s Consumer Sentiment Index was revised up to 49.8 in April 2026 from an initial estimate of 47.6, according to final data.

Despite the slight improvement, this remains the weakest reading on record, reflecting the heavy toll of the Iran conflict on consumer morale.

Sentiment declined across all demographics, regardless of political affiliation, income, age, or education.

Expectations for business conditions deteriorated for both the short and long term, nearly matching levels seen a year ago when reciprocal tariffs were introduced.

While the two-week ceasefire and a slight dip in gasoline prices helped sentiment recover a fraction of its early-month losses, the conflict’s primary impact on consumers stems from energy and broader price shocks.

Inflation expectations surged, with year-ahead expectations jumping to 4.7% from 3.8%, the largest one-month increase since April 2025, while long-term expectations climbed to 3.5%, the highest since October 2025.



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