Overview

• The University of Michigan Consumer Sentiment Index for April finalized at 52.2, a modest improvement from the preliminary 50.8 but still the fourth-lowest reading since 1952.
• President Trump's 90-day pause on 'reciprocal' tariffs announced on April 9 slightly eased consumer pessimism, though concerns over trade policy remain widespread.
• Inflation expectations for the next year reached 6.5%, the highest level recorded since 1981, reflecting persistent fears of rising prices.
• Middle-income families reported the sharpest decline in sentiment, with unease growing across all demographics regardless of age, education, income, or political affiliation.
• Federal Reserve officials are maintaining a cautious wait-and-see approach, closely monitoring how trade uncertainty and inflation forecasts will impact consumer spending and economic growth.