U.S. Consumer Confidence Falls to Record Low in April Amid Iran Conflict

Consumer confidence in the United States fell to a record low in April, as reported by the University of Michigan’s Survey of Consumers. The survey tracks views on the economy, personal finances, and spending, influenced by factors such as inflation, cost of living, and global conflicts.

Preliminary data indicated an 11% drop to 47.6, below levels seen in the post-World War II era, including during the Great Recession and the pandemic. The final reading for April rose to 49.8, compared to 53.3 in March, according to reports from the Wall Street Journal and CNN.

The survey’s director, Joanne Hsu, stated that many consumers attributed unfavorable economic changes to the conflict in Iran. She noted that open-ended comments reflected blame on the Iran conflict for economic issues. Declines occurred across demographic groups by age, income, and political party, as well as in every component of the index.

Survey responses were collected before President Donald Trump announced a ceasefire and its extension with Iran this week. Hsu said consumer sentiment would likely improve once confidence grows that supply disruptions from the conflict have ended and gas prices have moderated.

and Spending Trends Short-term

inflation expectations increased by one percentage point to 4.8% in early April, following the introduction of 'Liberation Day' tariffs, as reported by CNN. Long-term expectations rose to 3.4% from 3.2% in March, the highest since November. Economist Heather Long stated that higher transportation costs would affect prices for food, appliances, toys, and other items.