"The University of Michigan's Consumer Sentiment Index fell to 47.6 in preliminary April 2026 readings, a 10.7% drop from March's 53.3 and the lowest reading in the survey's 74-year history."
"Three of the lowest consumer sentiment readings ever recorded have now occurred within the last nine months of Trump's second term, indicating a significant shift in economic perception."
"The proximate driver of the April collapse is the war in Iran, with sentiment sliding since the conflict began and affecting demographic groups across age, income, and political party."
"Assessments of personal finances fell about 11%, with consumers citing rising prices and weaker asset values as their primary concerns, reflecting widespread economic anxiety."
The University of Michigan's Consumer Sentiment Index dropped to 47.6 in April 2026, marking the lowest level in its 74-year history. This decline surpasses the previous record low of 50 set in June 2022. The current pessimism is attributed to the war in Iran, affecting various demographic groups. Expectations for business conditions fell by 20%, and personal finance assessments dropped by 11%. The survey data reflects peak anxiety before a temporary cease-fire announcement, suggesting potential for recovery in future readings.
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