The University of Michigan Consumer survey showed a sharp surge in inflation expectations in April, with one-year expectations jumping from 3.8% to 4.8%, the largest monthly increase since April 2025. Long-run expectations also rose from 3.2% to 3.4%, marking the highest level since November 2025 and signaling that inflation concerns are becoming more persistent.
At the same time, overall sentiment deteriorated notably. The headline index fell from 53.3 to 47.6, with Current Conditions dropping from 55.8 to 50.1 and Expectations declining from 51.7 to 46.1, pointing to a broad-based weakening in consumer confidence.
Survey Director Joanne Hsu noted that many respondents blamed the Iran conflict for worsening economic conditions, particularly through higher energy prices. However, with most interviews conducted before the April 7 ceasefire announcement, sentiment could improve if supply disruptions ease and gasoline prices moderate.
