Consumer confidence in the United States has plunged to its lowest level in modern history, reflecting growing anxiety over rising prices and global instability linked to the ongoing Iran conflict. According to the latest survey from the University of Michigan, consumer sentiment dropped 11 percent to 47.6 in early April, marking the weakest reading recorded since the survey began after World War II. The decline surpasses previous lows seen during the Great Recession, the COVID-era downturn, and the recent inflation surge, highlighting the severity of current economic concerns.
Survey director Joanne Hsu noted that consumers across all demographics are feeling the impact, with many directly attributing worsening economic conditions to geopolitical tensions. The findings suggest a broad-based erosion of confidence, affecting households regardless of income level, age, or political affiliation. However, most responses were collected before the announcement of a temporary ceasefire involving Donald Trump, leaving room for potential improvement if energy markets stabilize and supply disruptions ease.
