The University of Michigan’s Consumer Sentiment Index fell 11% in April 2026. The final reading reached a record low of 47.6. This figure significantly missed market expectations. The ongoing Iran conflict and its economic fallout drove the decline. Most survey responses arrived before the announcement of a temporary Middle East ceasefire.
Confidence declined across all demographic groups and index components. Consumers reported increased anxiety regarding rising prices and falling asset values. One-year inflation expectations jumped from 3.8% to 4.8%. This represents the largest monthly increase since April 2025.
Record-low sentiment and rising inflation fears suggest a significant pullback in consumer spending. These trends create a major headwind for the consumer discretionary sector.