US Consumer Confidence Decline: Hits Record Low in Early April

U.S. consumer sentiment fell sharply in early April to its lowest level on record, according to preliminary data from the University of Michigan Surveys of Consumers released on April 10, 2026.

The headline index of consumer sentiment dropped to 47.6, down 10.7% from a final March reading of 53.3 and 8.8% below the year-ago level of 52.2.

The reading marks the weakest since the survey began in 1952, undercutting levels seen during the Great Recession and the early stages of the pandemic.

The current economic conditions sub-index declined 10.2% to 50.1, while the expectations sub-index fell 10.8% to 46.1.

Consumers raised their one-year inflation outlook to 4.8% from 3.8% in March, the largest monthly jump since April 2025.

Longer-run inflation expectations rose to 3.4% from 3.2%, the highest since November 2025.

Nearly all responses, 98%, were collected before the April 7 announcement of a temporary cease-fire in the U.S.-Israeli conflict with Iran.

"Consumer sentiment sank about 11% this month, extending a decline that began with the start of the Iran conflict, and is currently about 9% below a year ago," said Joanne Hsu, director of the Surveys of Consumers.

Open-ended comments from participants showed that many directly blamed the Iran conflict for unfavorable economic changes, including higher energy prices and weaker asset values.

Assessments of personal finances fell about 11%, and views of one-year business conditions plunged roughly 20%.

The drop occurred against a backdrop of oil prices surging more than 30% since the conflict intensified, pushing average U.S. retail gasoline prices above $4 a gallon for the first time in over three years.

Buying conditions for durable goods and vehicles worsened, with respondents citing elevated prices as the main factor.

This University of Michigan reading stands in contrast to the Conference Board's separate consumer confidence index, which edged up 0.8 points to 91.8 in March on slightly firmer views of current business and labor market conditions.

US Consumer Confidence Decline

That same survey, conducted from March 1 to 24, captured early effects of tariff-related cost increases and oil price spikes but still showed a modest overall gain. The next Conference Board update is scheduled for late April.

Economists had expected the Michigan preliminary April figure to come in around 52.0.

The deterioration appeared across all age groups, income levels, and political affiliations, with no demographic spared.

The survey noted that economic expectations could improve once consumers see an end to supply disruptions tied to the conflict and a moderation in gas prices.

The latest sentiment data arrives as households face sustained pressure from higher costs for energy and goods, factors that have already begun to weigh on plans for big-ticket purchases.

With consumer spending accounting for the bulk of U.S. economic activity, the sharp pullback in confidence underscores the potential for slower growth in coming months if price pressures persist.