U.S. Consumer Sentiment Hits Near Record Low as Inflation Expectations Surge

The University of Michigan reports a sharp decline in consumer confidence to 50.8 in April, with inflation expectations reaching 6.7%, the highest since 1981, driven by trade war policies.

The University of Michigan's Consumer Sentiment Index fell to 50.8 in April 2025, marking the fourth consecutive monthly decline and nearing record lows.
Year-ahead inflation expectations surged to 6.7%, the highest level since 1981, reflecting widespread consumer concern over rising prices.
President Trump's escalating trade war and tariff policies, including a 145% tariff on Chinese goods, are cited as key drivers of economic uncertainty and declining confidence.
The decline in sentiment is uniform across all demographics, with fears of unemployment and personal financial instability growing significantly.
Economists warn that surging inflation expectations and eroding consumer confidence could complicate Federal Reserve policy and increase the risk of a recession.