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Consumer Sentiment Plunges to All-Time Low Amid Inflation Fears
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Consumer Sentiment Plunges to All-Time Low Amid Inflation Fears
Apr 10, 2026 9:41 AM

12:28 PM EDT, 04/10/2026 (MT Newswires) -- US consumer sentiment hit the lowest on record this month, reflecting heightened worries about higher prices and the overall economic fallout from the Middle East conflict, University of Michigan's preliminary survey showed Friday.

The main sentiment index plunged about 11% to 47.6 in April from March. That's the lowest print on record, BMO Capital Markets said in a note.

Wall Street expected a 51.5 print, according to Bloomberg's poll. Annually, sentiment dropped 8.8% this month, the University of Michigan reported.

The survey was largely completed before Tuesday's announcement of a two-week ceasefire between the US and Iran. The conflict had spread across the Gulf region, disrupting shipments that triggered a surge in prices.

The truce appeared to be holding so far as officials from Washington and Tehran were expected to meet on Saturday in Pakistan, which helped broker the ceasefire.

"Demographic groups across age, income, and political party all posted setbacks in sentiment, as did every component of the index, reflecting the widespread nature of this month's fall," Surveys of Consumers Director Joanne Hsu said in a statement. "Economic expectations will likely improve after consumers gain confidence that the supply disruptions stemming from the Iran conflict have ended and gas prices have moderated."

US consumer inflation accelerated to its highest monthly reading in nearly four years in March as the Middle East conflict sent energy prices sharply higher, the Bureau of Labor Statistics reported Friday. The data showed energy price growth jumped about 11% sequentially in March, led by a 21% surge in gasoline, accounting for nearly three quarters of the headline increase.

The year-ahead inflation outlook advanced to 4.8% this month from 3.8% in March, the highest since June the University of Michigan survey showed. The five-year inflation forecast jumped to 3.4%.

The gauge for current economic conditions slumped 10% month over month to 50.1, while the expectations measure dropped nearly 11% to 46.1.

"Buying conditions for durables and vehicles worsened, again on the basis of high prices," Hsu said. "Open ended comments show that many consumers blame the Iran conflict for unfavorable changes to the economy."

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