US Consumer Sentiment Falls Sharply
The University of Michigan consumer sentiment for the US plunged to 50.8 in April 2025, the lowest level since June 2022 from 57 in March, well below forecasts of 54.5, preliminary estimates showed.
Consumer sentiment fell for the fourth straight month, and has now lost more than 30% since December 2024 amid growing worries about trade war developments that have oscillated over the course of the year.
Consumers report multiple warning signs that raise the risk of recession: expectations for business conditions, personal finances, incomes, inflation, and labor markets all continued to deteriorate this month.
The gauge for current economic conditions declined to 56.5 from 53.8 and the index measuring expectations fell to 47.2, the lowest since May 1980, from 52.6. Meanwhile, year-ahead inflation expectations surged to 6.7%, the highest reading since 1981, from 5%. The five-year expectations gauge edged up to 4.4% from 4.1%.
Source: Trading Economics
