The University of Michigan’s Consumer Sentiment Index plunged to 50.8 in April, marking an 11% monthly decline from March’s 57 reading and extending its losing streak to four consecutive months. This represents the lowest confidence level since 2011, reflecting growing pessimism among American consumers amid persistent inflation pressures and economic uncertainty.
The sharp deterioration suggests households are increasingly concerned about rising costs, particularly for essentials like food, energy, and housing. With inflation expectations remaining elevated and wage growth failing to keep pace, consumers appear to be bracing for tougher economic conditions ahead.
The sustained downward trend in sentiment could foreshadow weaker consumer spending—a critical driver of U.S. economic growth—potentially influencing Federal Reserve policy decisions if the weakness persists. Markets will scrutinize upcoming retail sales and employment data for confirmation of whether this gloomy outlook translates into reduced economic activity.
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