Consumer Confidence Just Hit an All-Time Low

The new inflation numbers were as bad as expected. But a closely watched University of Michigan survey on consumer sentiment, also released on Friday, might be worse. The survey found that consumer confidence in April fell to its lowest level on record, reports the Hill. The main index came in at 47.6, down nearly 11% from March and 9% from a year ago. The slide began in earnest after US-Israeli strikes on Iran started Feb. 28 and pushed fuel prices higher.

The gloom is broad-based: Confidence fell across age, income, and political groups. Views of personal finances dropped 11%, and expectations for business conditions a year out fell 20%. Inflation expectations for the next year jumped from 3.8% to 4.8%. (Friday's report came in at 3.3%.) "Many consumers blame the Iran conflict for unfavorable changes to the economy," says survey director Joanne Hsu. She noted, however, that the survey wrapped up before President Trump announced a two-week ceasefire. "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," she says.