Consumer confidence plunged to a record low in April as fears mounted over rising energy prices and the broader impact of the Iran war, according to a University of Michigan survey Friday.
The university’s headline index of consumer sentiment tumbled to 47.6, down 10.7% from March to its lowest on record. Current conditions and expectations indexes also saw double-digit monthly declines.
The drop in sentiment coincided with a sharp spike in inflation expectations, with respondents seeing prices up 4.8% in a year from now, a full percentage point rise from the March reading to its highest since August 2025. The one-year outlook in April 2025 was 6.5% following President Donald Trump’s “liberation day” tariff announcement.
Survey comments “show that many consumers blame the Iran conflict for unfavorable changes to the economy,” said the survey’s director, Joanne Hsu.
However, Hsu also noted that most of the interviews were completed before the April 7 ceasefire.
