US Consumer Sentiment Falls to Record Low in April Amid Inflation Fears

U.S. Consumer sentiment dropped to a record low in April 2026 as inflation fears intensified amid the ongoing war with Iran, according to final data released by the University of Michigan’s Surveys of Consumers. The index fell to 49.8, marking the lowest level ever recorded in the survey’s history.

The decline reflects growing anxiety over rising prices, particularly for energy and food, driven by disruptions in global oil markets. The war in Iran has disrupted shipping through the Strait of Hormuz, leading to higher costs for gasoline, fertilizers, petrochemicals, and aluminum. These supply chain pressures have translated directly into higher household expenses, weighing on consumer confidence across all demographic groups.

Despite a two-week cease-fire announced later in the month, which brought a modest easing in gas prices, sentiment only recovered a fraction of its early-month losses. The University of Michigan’s index had initially dropped to 47.6 earlier in April before rebounding slightly to the final reading of 49.8.

Inflation expectations also rose sharply. Consumers now anticipate prices to increase at an annual rate of 4.7% over the next year, up from 3.8% in March. Long-term inflation expectations over the next five years increased to 3.5% from 3.2% the prior month.

According to Joanne Hsu, director of the Surveys of Consumers, the Iran conflict influences consumer sentiment primarily through its impact on gasoline and related prices. She noted that military or diplomatic developments that do not ease supply constraints or lower energy prices are unlikely to improve consumer outlook.

The current conditions index fell to 52.5 from 55.8 in March, while the expectations index declined to 48.1 from 51.7. Declines in sentiment were observed across political affiliation, income level, age, and education groups, indicating widespread economic concern.

Analysts had forecast the index at 48.0 for April, meaning the actual outcome was slightly better than expected but still represented a historic low. The reading compares to 53.3 in March and reflects a 6.6% monthly drop and a 4.6% decline compared to April 2025.

As inflation remains a top concern for households and policymakers alike, the April data underscores the fragile state of consumer confidence amid persistent geopolitical and economic headwinds.