U.S. Consumer Sentiment Tumbles to All-Time Low

(MENAFN) American consumer confidence has collapsed to its lowest point in recorded history, with a key sentiment gauge plunging to levels unseen since tracking began more than seven decades ago, as energy price shocks and the economic fallout from the Iran war weigh heavily on household outlooks.

The U.S. Consumer Sentiment Index plummeted to 47.6 in April 2026, according to a preliminary reading released Friday by the University of Michigan Surveys of Consumers — a sharp 10.7 percent drop from the final March 2026 reading of 53.3. The figure marks the lowest level ever recorded in the survey's history dating back to 1952.

The deterioration was broad-based across all sub-indices. The Current Economic Conditions Index declined to 50.1 in April, retreating from March's final reading of 55.8, while the Index of Consumer Expectations fell to 46.1, down from 51.7 the prior month.

Inflation anxiety is intensifying alongside the sentiment collapse. Consumers now anticipate a 4.8 percent price increase over the next 12 months — the steepest single-month surge in expectations since April 2025. Long-run inflation expectations climbed to 3.4 percent, edging 0.2 percentage points above March's reading.

The sentiment data arrived on the same day the U.S. Bureau of Labor Statistics reported that the consumer price index surged 0.9 percent month-on-month and 3.3 percent year-on-year in March, with energy prices identified as the overwhelming driver of the acceleration.

Together, the twin data releases paint a deeply unsettling picture of an economy under compounding pressure — with everyday Americans growing increasingly alarmed over the financial consequences of a conflict showing little sign of immediate resolution.

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