{"id":606797,"date":"2026-04-26T03:54:10","date_gmt":"2026-04-26T03:54:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/606797\/"},"modified":"2026-04-26T03:54:10","modified_gmt":"2026-04-26T03:54:10","slug":"consumer-confidence-plummeted-to-record-low-this-month-study-reveals-though-spending-shows-a-glimmer-of-hope","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/606797\/","title":{"rendered":"Consumer confidence plummeted to record low this month, study reveals \u2014 though spending shows a glimmer of hope"},"content":{"rendered":"

Consumer confidence across the United States plunged to an all-time low this month, as Americans grapple with anxiety over the war in Iran, new data revealed.\u00a0<\/p>\n

The University of Michigan\u2019s long-running Survey of Consumers tracks how Americans feel about the economy, their personal finances and spending \u2014 shaped by factors like inflation, the cost of living and global conflicts.\u00a0<\/p>\n

Earlier this month, preliminary data showed the consumer sentiment dropped a drastic 11% to a historic low of 47.6 \u2014 a level below anything recorded in the post\u2013World War II era, including during the Great Recession, the pandemic slump, and the subsequent surge in inflation, CNN reported.\u00a0<\/a><\/p>\n

\"APreliminary data showed the consumer sentiment dropped a drastic 11% to a historic low of 47.6 in April \u2014 a level below anything recorded in the post\u2013World War II era. REUTERS<\/p>\n

April\u2019s final reading showed a modest uptick to 49.8, but it remains notably below last month\u2019s 53.3, raising continued concerns, according to the Wall Street Journal.<\/a>\u00a0<\/p>\n

This month\u2019s record-low data reflects the troubling sentiment about the country\u2019s economic stability and the concerns weighing on Americans right now, including the war in Iran, according to the survey\u2019s director, Joanne Hsu.\u00a0<\/p>\n

\u201cOpen-ended comments show that many consumers blame the Iran conflict for unfavorable changes to the economy,\u201d Hsu said, CNN reported.\u00a0<\/p>\n

\u201cDemographic 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\u2019s fall,\u201d she added.<\/p>\n

\"A\u201cMore 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,\u201d according to economist Heather Long. REUTERS<\/p>\n

It is important to note, however, that survey responses for April were collected before President Donald Trump announced the ceasefire and subsequent ceasefire extension<\/a> with Iran this week.<\/p>\n

Hsu believes consumer sentiment \u201cwill likely improve after consumers gain confidence that the supply disruptions stemming from the Iran conflict have ended and gas prices have moderated.\u201d<\/p>\n

While it\u2019s not surprising that consumer confidence is low due to stubborn inflation, a troubling job market, and political tensions within the US and abroad, reports suggest that consumer spending has not changed too drastically, giving consumers a glimmer of hope.<\/p>\n

Data for April isn\u2019t available yet, but US retailers reported solid sales gains in March \u2014 and the major banks\u2019 first-quarter earnings indicate household finances are holding up well, which is reassuring for consumers, the Wall Street Journal reported.\u00a0<\/p>\n

At the same time, Americans\u2019 short-term inflation outlook jumped by a full percentage point to 4.8% early this month \u2014 the largest monthly increase in a year \u2014 following the rollout of sweeping \u201cLiberation Day\u201d tariffs, according to CNN.<\/p>\n

Long-term expectations for inflation, within the next five to 10 years, rose more modestly to 3.4% from 3.2% in March, reaching their highest level since November.<\/p>\n

As the battle between the US and Iran continues, amidst rising inflation and a dire job market, consumer sentiment is only expected to drop as Americans face rising costs.<\/p>\n

\u201cMore 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,\u201d Long cautioned, according to Reuters.<\/a><\/p>\n

\"AReassuringly, consumer spending has only waned slightly, despite low consumer index scores. REUTERS<\/p>\n

\u201cSentiment won\u2019t improve until the Strait of Hormuz is open, and there is a permanent end to the conflict,\u201d she warned.<\/p>\n","protected":false},"excerpt":{"rendered":"Consumer confidence across the United States plunged to an all-time low this month, as Americans grapple with anxiety…\n","protected":false},"author":2,"featured_media":606798,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,16306,12,101,263735,2402,801,149,2066,520,2897,210369,21,24385],"class_list":{"0":"post-606797","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-consumer-spending","10":"tag-donald-trump","11":"tag-economy","12":"tag-global-politics","13":"tag-inflation","14":"tag-iran","15":"tag-lifestyle","16":"tag-money","17":"tag-shopping","18":"tag-spending","19":"tag-strait-of-hormuz","20":"tag-united-states","21":"tag-university-of-michigan"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/606797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=606797"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/606797\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/606798"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=606797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=606797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=606797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}