Americans feel worse about the economy than they have in more than 70 years.
The University of Michigan said Friday that its measure of consumer sentiment sank about 11% this month to reach the lowest level recorded since the school began its surveys in 1952.
The Michigan index of consumer sentiment fell from 53.3 last month to 47.6, dropping below the previous low of 50 from June 2022, when inflation spiked to levels not seen in decades.
Sentiment is down 9% from where it was 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,” Joanne Hsu, the director of the Michigan survey, said in a statement accompanying the preliminary results.
Americans’ perception of current economic conditions, a related measure in the survey, dropped more than 10% compared with March and more than 16% from where it was a year ago. Expectations for business conditions a year from now dropped by 20% and now stand 6% below last April. Expectations for inflation a year from now also jumped, from 3.8% in March to 4.8% this month, the largest one-month increase since April 2025.
“Assessments of personal finances declined about 11%, with consumers expressing a substantial increase in concerns over high prices and weaker asset values,” Hsu said. She added that comments from consumers show that many blame the Iran war for worsening the economy, though nearly all of the survey interviews were conducted before a two-week ceasefire was announced a few days ago.
Economist Claudia Sahm noted in a post on X that negative views of the government’s economic policy — the survey asks specifically about “steps taken to fight inflation or unemployment” — have also risen to multi-decade highs. “In early April, over 70% of Americans said the government is doing a poor job on economic policy,” Sahm wrote. “Tariffs last year and gas prices now are deeply unpopular.”
The bottom line: The final report for April may see sentiment improve somewhat as the ceasefire raises hopes that gas prices will fall, but the war in Iran isn’t resolved just yet and the supply disruptions it caused may take time to repair.