Consumer sentiment fell back for the second consecutive month, reaching a low comparable to its mid-2022 trough, according to the University of Michigan Surveys of Consumers.
Declines in sentiment were seen across political party, income, age and education, reflecting the broad-based nature of this month's results. Expected business conditions declined for both the short and long run, nearly matching year-ago readings when the reciprocal tariff regime was implemented.
After the two-week ceasefire was announced mid-month, gas prices ticked a bit lower and sentiment recovered a modest portion of its early-month losses.
"The Iran conflict appears to be passing through to consumer views primarily through effects on prices, particularly gas and energy prices stemming from disruptions to shipping," said U-M economist Joanne Hsu, director of the surveys. "At this time, consumers do not foresee relief from high prices in the near future. In fact, consumers expect them to worsen before they improve."
Views of personal finances deteriorate
Current personal finances worsened about 9% this month. About half of consumers spontaneously mentioned high prices eroding their living standards and 22% cited weakening incomes.
Expectations of personal finances for the year ahead softened as well this month. Only 21% of consumers expect to be financially better off a year from now, down from the 33% seen in January 2025.
Gas prices loom large for consumers, with one-third of respondents providing unsolicited comments on those prices during the interviews, Hsu said.
Average year-ahead gas price expectations surged almost sixfold from February, reaching its highest reading since June 2022, soon after Russia's invasion of Ukraine and the peak of postpandemic inflation. At this time, consumers expect at least a short-term shock to prices at the pump with limited long-term increases for gas prices.
Buying conditions for major purchases worsen
Consumers reported that buying conditions for durable goods are broadly unfavorable. Concerns over high prices have increased, with economic disruptions from the Iran conflict adding to the upward price pressures from tariffs over the past year.
Buying conditions for vehicles fell 12% this month.
"High price reasons dominate consumers' thinking, along with recent increases in consumers mentioning costs of gasoline as a negative factor," Hsu said. "Interest rate concerns are also prominent, though little changed from previous months."
Consumer Sentiment Index
The Consumer Sentiment Index fell to 49.8 in the April 2026 survey, down from 53.3 in March and below last April's 52.2. The Current Index fell to 52.5, down from 55.8 in March and below last April's 59.8. The Expectations Index fell to 48.1, down from 51.7 in March but above last April's 47.3. Interviews for this release were completed between March 24 and April 20.
About the surveys
The Surveys of Consumers is a rotating panel survey at the University of Michigan Institute for Social Research. It is based on a nationally representative sample that gives each household in the coterminous U.S. an equal probability of being selected. Interviews are conducted throughout the month by web. The minimum monthly change required for significance at the 95% level in the Sentiment Index is 4.8 points; for the Current Economic Conditions Index and Index of Consumer Expectations, the minimum is 6 points.
About ISR
Established in 1949, the Institute for Social Research at the University of Michigan is among the world's oldest social science research organizations and a world leader in the development and application of social science methodology. ISR conducts some of the most widely cited surveys and studies in the nation, including the University of Michigan Surveys of Consumers, American National Election Studies, Monitoring the Future Study, Panel Study of Income Dynamics, Health and Retirement Study, National Survey of Black Americans and World Values Survey. ISR is also home to the Inter-University Consortium for Political and Social Research, which maintains the world's largest computerized social science data archive.
