U.S. consumer sentiment reached a historic low in April 2026, with the University of Michigan's Consumer Sentiment Index falling to 47.6. This represents a 10.7% decrease from the final March reading of 53.3 and marks the lowest level recorded since the survey began in 1952.
The subindex for current economic conditions also saw a decline, dropping to 50.1 in April from 55.8 in March. Concurrently, the subindex for consumer expectations fell to 46.1 in April, down from 51.7 in the previous month.
Inflation expectations intensified in April. The one-year inflation index climbed to 4.8%, a substantial increase from 3.8% in March. This 100-basis-point jump is the largest one-month increase since April 2025. The five-year inflation index also edged upward, reaching 3.4% in April, compared to 3.2% in March. This marks the highest reading for long-term inflation expectations since November 2025.
The widespread downturn in sentiment was observed across all demographic groups, including variations in age, income, and political affiliation. All major components of the index, such as personal finances, business conditions, and buying conditions, also registered declines. Consumers expressed increasing pessimism regarding future economic conditions, with expectations for the next six months dropping sharply. Confidence in personal finances weakened, and buying conditions for major purchases like cars and appliances deteriorated.
Surging gas prices were identified as a significant factor contributing to the worsening consumer outlook. The decline in confidence was broad-based, signaling widespread economic anxiety among American consumers. The preliminary data for April underscored how dramatically confidence has deteriorated, with the index averaging around 84 historically.