FX.co ★ US Consumer Sentiment Collapses to Record Low

The University of Michigan’s Consumer Sentiment Index sank 11% to a historic low of 47.6 in early April 2026, sharply undershooting both market expectations of 52 and last year’s reading by 9%. Nearly all interviews (98%) were completed before the announcement of the temporary cease-fire, underscoring the immediate drag the Iran conflict has had on confidence. Sentiment weakened across all demographic groups and in every index component, pointing to a broad-based deterioration. Expectations for business conditions over the next year collapsed 20%, while assessments of personal finances fell 11%, with respondents citing rising prices and declining asset values as primary concerns. Perceived buying conditions for durable goods and vehicles worsened further, again reflecting elevated costs tied to the war. One-year inflation expectations jumped to 4.8% from 3.8% in March, the largest monthly increase since April 2025, and long-term inflation expectations climbed to 3.4%, their highest level since November 2025.