The U.S. consumer sentiment fell to a record low in April as inflation fears surged amid the Iran conflict, according to a University of Michigan survey. The report said the sentiment index dropped 10.7% to 47.6, reflecting sharp declines in both current conditions and future expectations.
Inflation expectations also rose significantly, with consumers projecting prices to increase 4.8% over the next year, up from March levels. Survey director Joanne Hsu said many respondents blamed the Iran war for worsening economic conditions.
Americans are souring on the economy as the US-Israeli war with Iran pushes up inflation, prompting consumer sentiment to plummet to its lowest level on records going back to 1952. https://t.co/6fzU8upUCF pic.twitter.com/CFxq0I0pFg
— CNN (@CNN) April 10, 2026
The report noted that most responses were collected before the April 7 ceasefire announced by President Donald Trump, suggesting sentiment could improve if energy prices stabilize.
Separate data from the Bureau of Labor Statistics showed inflation rose 0.9% in March, driven largely by higher energy costs. Long-term inflation expectations also edged higher.
Analysts say persistent energy disruptions and uncertainty could continue to weigh on consumer confidence in the months ahead.
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TIPP Staff
