US Consumer Sentiment Drops to Record Low on Price Concerns

Pedestrians in Washington, DC, US, on Wednesday, March 11, 2026. Photo by Valerie Plesch /Photographer: Valerie Plesch/BloArticle content(Bloomberg) — US consumer sentiment fell in recent weeks to a record low, indicating Americans’ increasing worries about mounting inflation due to the Iran war.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe preliminary April sentiment index slumped to 47.6 from 53.3 in March, according to the University of Michigan data out Friday. The survey period includes responses from March 24 to April 7. That was below all but one estimate in a Bloomberg survey of economists.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentConsumers expect prices to rise at an annual rate of 4.8% over the next year, jumping a percentage point from March in the biggest advance since President Donald Trump announced sweeping tariffs a year ago.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThey saw costs rising at an annual rate of 3.4% over the next five to 10 years, up slightly from a month earlier.Article contentGasoline prices, well above $4 a gallon and the highest since 2022, could persuade consumers to cut back on discretionary spending. Such an erosion of purchasing power risks slowing the economy at a time when employment prospects are limited and Americans are already anxious about a high cost of living.Article contentThe current conditions gauge slid to a record-low of 50.1 in April, while the expectations index declined to the weakest since 1980. Consumers’ perceptions of their current financial situation matched the worst since 2009. The outlook for business conditions over the next year fell to the lowest since mid-2022.Article content“Comments show that many consumers blame the Iran conflict for unfavorable changes to the economy,” Joanne Hsu, director of the survey, said in a statement. “Economic expectations will likely improve after consumers gain confidence that the supply disruptions stemming from the Iran conflict have ended and gas prices have moderated.”Article contentArticle contentWhile a temporary ceasefire between the US and Iran is in place, it’s tenuous and oil flows from the Middle East remain disrupted. Even if a broader peace deal is reached, analysts have cautioned global shipping and energy markets could take months to normalize.Article contentEconomists expect fuel and fertilizer costs to filter through to the consumer in the months ahead, including higher grocery bills.Article contentSeparate data out Friday illustrated the initial impact of the conflict. The consumer price index rose 0.9% in March, the biggest increase in nearly four years, reflecting a record increase in gasoline prices.Article content(Adds graphic)Article contentTrending This creative money transfer strategy among family members could raise red flags with CRA Personal Finance Global rate path veers higher in wake of another Trump shock Economy Posthaste: More Canadians desperate for tax refund to plug holes in their finances News How the global energy crisis is shaking Canada from coast to coast — and could leave a lasting legacy Oil & Gas BYD to open 20 car dealerships in Canada this year Autos Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. This creative money transfer strategy among family members could raise red flags with CRA Personal Finance Global rate path veers higher in wake of another Trump shock Economy Posthaste: More Canadians desperate for tax refund to plug holes in their finances News How the global energy crisis is shaking Canada from coast to coast — and could leave a lasting legacy Oil & Gas BYD to open 20 car dealerships in Canada this year Autos