April survey shows slight late-month improvement but overall sentiment reaches lowest level on record.
By yourNEWS Media Newsroom
Consumer sentiment in the United States declined in April, reaching the lowest level recorded since tracking began in 1978, according to data from the University of Michigan.
The university’s final consumer sentiment index registered 49.8 for April, down from 53.3 in March. Although the final figure reflected a modest rebound from an even weaker mid-month reading, it still marked a record low for the measure.
Joanne Hsu, director of the Michigan Surveys, said shifting conditions during the month contributed to the partial recovery. “After the two-week cease-fire was announced and gas prices softened a touch, sentiment recovered a modest portion of its early-month losses,” Hsu said in a statement. She added that the conflict involving Iran has influenced public outlook primarily through its impact on fuel costs and broader price pressures.
“The Iran conflict appears to influence consumer views primarily through shocks to gasoline and potentially other prices,” Hsu said. “In contrast, military and diplomatic developments that do not lift supply constraints or lower energy prices are unlikely to buoy consumers.”
Despite the decline in sentiment, labor market indicators remain stable. The unemployment rate continues to sit at low levels, and recent data show layoffs remain historically limited. Consumer spending also showed strength in March.
Inflation trends present a mixed picture. Headline inflation has been pushed higher by rising gasoline prices, while core measures—excluding volatile components—have not shown similar upward pressure. Even so, survey respondents reported growing concern about future price increases and job security.
Consumers now expect inflation to reach 4.7% over the next year, up from 3.8% in March, though slightly below the mid-April estimate of 4.8%. Longer-term expectations also increased, reaching 3.5% in April, the highest level since October 2025. In the months preceding the U.S.-Israel military action involving Iran, long-term expectations had remained in the 3.2% to 3.3% range.
Measures of current economic conditions declined 5.9% from the previous month, while expectations for future conditions dropped 7%. Both indicators, however, remain above levels recorded one year earlier.
Hsu noted that the downturn in sentiment was widespread across demographic groups. “Decreases in sentiment were seen across political party, income, age, and education,” she said.
Survey data showed that both Republicans and Democrats reported declines in views of current conditions and expectations. Among independents, there was a slight improvement in perceptions of current conditions, though it was offset by a decline in expectations for the future.
The April figures reflect a combination of economic and geopolitical factors shaping consumer outlook, with energy prices and inflation concerns playing a central role in the shift in sentiment.