US consumer sentiment plunged sharply in April, hitting its second-lowest level since 1952.
This marks the fourth consecutive monthly decline, driven by rising inflation and growing concerns over the potential impact of additional tariffs.
The University of Michigan’s Index of Consumer Sentiment fell by 11% in the beginning of April to 50.8.
Joanne Hsu, survey director, said: “This decline was, like last month’s, pervasive and unanimous across age, income, education, geographic region, and political affiliation. Sentiment has now lost more than 30% since December 2024 amid growing worries about trade war developments that have oscillated over the course of the year.”
The growing concern was broad-based across all political demographics, according to the survey.
Hsu added, “Year-ahead inflation expectations surged from 5.0% last month to 6.7% this month, the highest reading since 1981 and marking four consecutive months of unusually large increases of 0.5 percentage points or more. This month’s rise was seen across all three political affiliations.”
US shoppers are also bracing themselves for higher costs due to the impact of tariffs, according to a research study by Reuters/Ipsos.
Additionally, US retailers are warning their customers of potential price hikes due to the ongoing trade war between China and the US.
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