Consumer sentiment hits record low, inflation fears rise amid Iran war

[BumRushDaShow]

Source: CNBC

Published Fri, Apr 10 2026 10:07 AM EDT Updated 12 Min Ago


Consumer confidence plunged to a record low in April as fears mounted over rising energy prices and the broader impact of the Iran war, according to a University of Michigan survey Friday.

The university’s headline index of consumer sentiment tumbled to 47.6, down 10.7% from March to its lowest on record. Current conditions and expectations indexes also saw double-digit monthly declines.

The drop in sentiment coincided with a sharp spike in inflation expectations, with respondents seeing prices up 4.8% in a year from now, a full percentage point rise from the March reading to its highest since August 2025. The one-year outlook in April 2025 was 6.5% following President Donald Trump’s “liberation day” tariff announcement.

Survey comments “show that many consumers blame the Iran conflict for unfavorable changes to the economy,” said survey Director Joanne Hsu. However, Hsu also noted that most of the interviews were completed prior to the April 7 cease fire.

Read more: https://www.cnbc.com/2026/04/10/consumer-sentiment-inflation-fears-iran-war.html

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From the source - [link:https://www.sca.isr.umich.edu/Surveys of Consumers]






Article updated.

Previous article -

Published Fri, Apr 10 2026 10:07 AM EDT Updated 2 Min Ago


Consumer outlook plunged to a record low in April as fears mounted over rising energy prices and the broader impact of the Iran war, according to a University of Michigan survey Friday.

The university's headline index of consumer sentiment tumbled to 47.6, down 10.7% from March to its lowest on record. Current conditions and expectations indexes also saw double-digit monthly declines.

The drop in sentiment coincided with a sharp spike in inflation expectations, with respondents seeing prices up 4.8% in a year from now, a full percentage point drop from the March reading to its highest since August 2025.


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Original article/headline -

Consumer sentiment tanks, inflation fears rise in March amid Iran war

Published Fri, Apr 10 2026 10:07 AM EDT


This is breaking news. Please refresh for updates.

[UpInArms]

1. lowest on record

So much winning

ETA:

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. Demographic 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’s fall. One-year expected business conditions plunged about 20% and is now 6% below last April. Assessments of personal finances declined about 11%, with consumers expressing a substantial increase in concerns over high prices and weaker asset values. Buying conditions for durables and vehicles worsened, again on the basis of high prices. Open ended comments show that many consumers blame the Iran conflict for unfavorable changes to the economy. Note that 98% of interviews were completed prior to the April 7th announcement of a temporary cease-fire. 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.

Year-ahead inflation expectations surged from 3.8% in March to 4.8% this month, the largest one-month increase since April 2025 (see chart, black dashed line and black circle). The current reading exceeds those seen in 2024 and remains well above the 2.3-3.0% range seen in the two years pre-pandemic. Long-run inflation expectations ticked up from 3.2% last month to 3.4% this month, the highest reading since November 2025. In 2024, values ranged between 2.8% and 3.2%, while in 2019 and 2020, they were consistently below 2.8%.

https://www.sca.isr.umich.edu/

[FakeNoose]

2. One good piece of news ... the price of coffee seems to be settling down

I was delighted to find coffee being sold for (discounted) $8.99 for a 12-ounce package yesterday. I think the retailers are finally accepting the fact that Chump's crazy tariffs aren't going to happen. Of course, coffee prices will never return to where they were. But at least they aren't higher each time I walk into the grocery store.

[progree]

3. 10 Year Graph, and 66 year graph link

50 YR GRAPH (actually back to about 1960, so 66 years):
https://www.sca.isr.umich.edu/files/chicsh.pdf

The survey of course was before today's hot inflation report ( https://www.democraticunderground.com/10143647448 ). That will cheer them up.

[BumRushDaShow]

4. I *had* to do a screenshot of that 66-year plot because the context is glaring

for where we are today, compared to periods over the past 6 decades, and showing periods where we know things weren't going well!



(from here - https://www.sca.isr.umich.edu/files/chicsh.pdf)

Looks like it is hovering below where it was back in 1980.