US Consumer Confidence Plummets to Record Low, Inflation Expectations Rise

US consumer confidence fell sharply in April 2026. Pressure stemmed from rising energy prices and concerns about the impact of the Iran conflict. The University of Michigan survey, reported by CNBC, recorded the consumer sentiment index at 47.6. This figure dropped 10.7 per cent from March and marked the lowest level on record. The decline affected all components. The current conditions index and expectations index both weakened by double digits on a monthly basis. For comparison, inflation expectations reached 6.5 per cent in April 2025 following the announcement of tariffs by US President Donald Trump. Joanne Hsu, director of the University of Michigan survey, stated that consumer perceptions were influenced by the geopolitical situation. “It shows that many consumers blame the Iran conflict for the unfavourable changes to the economy,” she said. Hsu sees potential for improvement if pressures ease. “Economic expectations are likely to improve once consumers are convinced that supply disruptions due to the Iran conflict have ended and petrol prices have fallen,” Hsu remarked. This data aligns with reports from the US Bureau of Labor Statistics. The consumer price index rose 0.9 per cent in March. Annual inflation reached 3.3 per cent. The price increases mainly came from the energy sector. Food prices remained relatively stable. Long-term inflation expectations also rose. The five-year projection stood at 3.4 per cent, up 0.2 percentage points from the previous month.