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Consumer Sentiment Crashes To 3-Year Lows As Inflation Expectations Spike To 1981 Highs

A sharp collapse in consumer confidence is setting off alarms from Main Street, with fresh inflation fears and growing recession risk fanning concerns that the U.S. economy is heading toward a painful stagflationary mix not seen since the early 1980s.

In preliminary April data released Friday, the University of Michigan's Consumer Sentiment Index plunged to 50.4, its lowest reading since June 2022 and a steep drop from March's 57 print.

The figure missed economists' forecasts of 54.5 by a wide margin, highlighting deepening unease among American households about the economic outlook.

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The subindex measuring current economic conditions dropped 11.4% month-over-month to 56.5, while the gauge for consumer expectations fell even more sharply to 47.2, down from 52.6 in March. On a year-over-year basis, that's nearly 30 points below April 2024 levels.

"Consumer sentiment fell for the fourth straight month, plunging 11% from March," said Joanne Hsu, ...

https://www.benzinga.com/economics/macro-economic-events/25/04/44764554/consumer-sentiment-crashes-to-3-year-lows-as-inflation-expectations-spike-to-1981