US consumer sentiment dives to a record low in April amid Iran war

U.S. consumer sentiment plunged to a ​record low in ​early April and consumers anticipated a ​surge in inflation in the next 12 months, a survey showed on Friday.

The University of Michigan's Surveys of ‌Consumers said ⁠its Consumer ⁠Sentiment Index tumbled to an all-time low of 47.6 this month from a final reading of 53.3 in March. Economists polled by Reuters had forecast the index easing to 52.0.

The deterioration in sentiment ​was across age, income ⁠and political party ‌affiliation, though the survey noted ​that ​almost all the responses came before a ⁠ceasefire agreement earlier this week in the U.S.-Israeli ​war with Iran.


The war has ​sent oil prices surging by more than 30%, with the national average retail gasoline price breaking above $4 a gallon for the first time in more than three years.

"Open ended ‌comments show that many consumers blame the Iran conflict for unfavorable changes ​to the ​economy," said ⁠Joanne Hsu, the director of the Surveys of Consumers.

The survey's measure of consumer expectations for inflation over the ​next year jumped to 4.8% this month from 3.8% in March. Consumers' expectations for inflation over the next five years rose to 3.4% from 3.2% last month.