US Consumer Sentiment Hits Record Low, Inflation Expectations Soar
The University of Michigan Consumer Sentiment Index was revised up to 49.8 in April 2026 from an initial estimate of 47.6. While slightly improved, this remains the weakest reading in the survey's history, signaling significant pressure on household morale.
The decline in sentiment was widespread across demographics, with no significant differences based on political affiliation, income, age, or education. Expectations for business conditions worsened in both the short and long term, approaching levels seen a year ago when the reciprocal tariff episode weighed on economic perceptions.
The survey highlighted the Iran conflict as a key driver of the weakness, primarily through energy channels and broader price shocks. A two-week ceasefire and a slight drop in gasoline prices helped reverse only a small portion of the early month's decline.
A key signal for the market came from the surge in inflation expectations: the one-year projection rose to 4.7% from 3.8% (the largest monthly increase since April 2025), while longer-term expectations rose to 3.5% (the highest since October 2025). Going forward, the market will monitor the direction of energy prices, developments in the conflict, and whether the decline in sentiment begins to be reflected in retail spending data. (gn)
Source: Newsmaker.id
