U.S. Consumer Sentiment Hits Record Low on War Price Surge

U.S. consumer sentiment fell to a record low in early April, driven by sharp price increases tied to the U.S.-Israeli war with Iran, according to a preliminary survey released Friday.

The University of Michigan's Consumer Sentiment Index dropped to 47.6 this month, down 11 points from 53.3 in March and marking the lowest reading since records began in the post-World War II era. The figure fell below economists' expectations of 52.0 and was lower than levels seen during the Great Recession, the COVID-19 pandemic lockdowns and the inflation surge that followed. The decline affected all demographic groups, including those divided by age, income and political affiliation, and hit every component of the index.

Open-ended responses from participants highlighted the war as a key factor in the downturn. "Many consumers blame the Iran conflict for unfavorable changes to the economy," said Joanne Hsu, director of the University of Michigan's Surveys of Consumers. The survey captured responses primarily from March 24 to April 7, with nearly all collected before President Donald Trump announced a temporary ceasefire with Iran earlier this week. Hsu noted that sentiment could rebound once...