Consumer sentiment plunged in April as Americans grew increasingly concerned about inflation and slowing economic growth, according to the latest University of Michigan survey.
By the numbers: The headline consumer sentiment index dropped to 50.8 in April, an 11% decline from March and the lowest reading since June 2022.
- The expectations index — which reflects consumers’ outlook for the economy — fell even further to 47.2, marking not only a sharp drop from March’s 52.6 reading but also the lowest level on record.
Driving the decline: Soaring inflation expectations. The year-ahead inflation outlook surged to 6.7% in April, up from 5.0% in March. That marks the fifth consecutive monthly increase and the highest reading ever recorded by the survey.
Market reaction: Bond yields spiked as investors recalibrated rate expectations. The 10-year Treasury yield jumped above 4.60% in intraday trading before settling at 4.49%, up 10 basis points on the day.
Bottom line: Consumers are losing confidence — fast. With inflation expectations surging and recession fears building, Americans are bracing for more economic pain ahead.
