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US consumer sentiment drops to near four-year low in April
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US consumer sentiment drops to near four-year low in April
Apr 24, 2026 7:37 AM

WASHINGTON, April 24 (Reuters) - U.S. consumer sentiment fell to the lowest level in nearly four years in April as the war with Iran fanned inflation fears, a survey showed on Friday.

The University of Michigan's Surveys of Consumers said its Consumer Sentiment Index dropped to a final reading of 49.8 this month, the lowest level since June 2022. The reading was, however, an improvement from the 47.6 reported earlier in the month. Economists polled by Reuters had forecast the index at 48.0. It was at 53.3 in March.

"After the two-week cease-fire was announced and gas prices softened a touch, sentiment recovered a modest portion of its early-month losses," said Joanne Hsu, the director of the Surveys of Consumers. 

"The Iran conflict appears to influence consumer views primarily through shocks to gasoline and potentially other prices. In contrast, military and diplomatic developments that do not lift supply constraints or lower energy prices are unlikely to buoy consumers."

The U.S.-Israel war with Iran has disrupted shipping in the Strait of Hormuz, boosting the price of oil and other commodities, including fertilizers, petrochemicals and aluminum.

Tehran effectively ​closed the strait after the start of the war ​on February 28. President Donald Trump this week indefinitely extended the ceasefire with Iran, though a U.S. Navy blockade of Iranian ports remained in effect.

The survey's measure of consumer expectations for inflation over the next year ticked down to 4.7% this month from 4.8% earlier. It was at 3.8% in March.

Consumers' expectations for inflation over the next five years climbed to 3.5% from 3.2% last month.

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