US Consumer Sentiment Falls to Record Low in April

US consumer sentiment has plunged 11% to a record low in April 2026, according to the University of Michigan Surveys of Consumers. The index is also down 9% compared with a year ago. Business sentiment fell even more sharply, dropping 20% this month and running 6% lower than April 2025.

Energy and Food Prices

A primary driver of the sentiment collapse is the ongoing rise in energy and food prices. The Middle East conflict's impact on energy markets continues to squeeze household budgets. Consumers are becoming increasingly pessimistic about their financial outlook, with spending patterns shifting toward essentials.

Slowing GDP Growth

Real gross domestic product grew at just 0.5% annual rate in Q4 2025. The US monthly international trade deficit widened to $57.3 billion in February, up from $54.7 billion in January. Personal income decreased by $18.2 billion in February, while personal consumption expenditures rose by $103.2 billion, suggesting consumers are dipping into savings.

Expert Analysis

Federal Reserve Vice Chair Jefferson addressed the labor market and economic outlook in an early April speech. Analysts warn that weakening consumer spending could further decelerate economic growth, potentially pushing the economy toward a technical recession if trends continue.