UoM; US Consumer Confidence Falls to Record Low
The University of Michigan Consumer Sentiment Index plunged 11% to a record low of 47.6 in early April 2026, well below market expectations of 52 and about 9% lower than a year ago. Nearly all surveys (98%) were conducted before the temporary ceasefire announcement, underscoring the immediate impact of the Iran conflict on consumer confidence.
The decline was broad-based, affecting all demographics and all index components. Expectations for one-year business conditions fell 20%, while assessments of personal financial conditions fell 11%, with consumers highlighting rising prices and declining asset values. Purchasing conditions for durable goods and vehicles also worsened due to high war-related costs.
On the inflation front, one-year inflation expectations jumped to 4.8% from 3.8% in March—the largest monthly increase since April 2025. Longer-term inflation expectations rose to 3.4%, the highest since November 2025, reinforcing the narrative that price pressures are beginning to impact consumer psychology and complicate the scope for monetary policy easing.
Source: Newsmaker.id
