U.S. Consumer Sentiment Drops to Record Low in April 2026 as Index Falls to 56.6

Consumer confidence across the United States plunged to an all-time low in April 2026, as Americans grappled with economic anxiety tied to the war in Iran. 6, a level below any recorded in the post–World War II era, including during the Great Recession and the pandemic. 3.

Open-ended comments from respondents highlighted the Iran conflict as a key factor in unfavorable economic changes. “Demographic groups across age, income, and political party all posted setbacks in sentiment, as did every component of the index, reflecting the widespread nature of this month’s fall,” said Joanne Hsu, the survey’s director.

Survey responses were collected before President Donald Trump announced a ceasefire with Iran in April 2026 and its subsequent extension later that month.

8% in April 2026, the largest monthly increase in a year, following the rollout of sweeping “Liberation Day” tariffs. 2% in March, reaching the highest level since November. Economist Heather Long cautioned that higher transportation costs from the conflict would pass along to consumers.

“More pain will come as higher transportation costs are passed along for food, appliances, toys, and every other item that travels on a ship, car or plane,” she said. Despite the low sentiment readings, consumer spending showed resilience. U.S.

Retailers reported solid sales gains in March 2026, and major banks’ first-quarter earnings indicated household finances were holding up well. Data for April spending was not yet available as of early May 2026. 9 trillion in 2025, marking an 11th consecutive year of growth.

The figure hit a record high, fueled by insecurity and rearmament that drove defense budgets worldwide. 48 trillion on military in 2025, accounting for just over half of global expenditure. Capital expenditure from the largest tech companies surged to more than $400 billion in 2025, driven by data center investments.