The University of Michigan’s Consumer Sentiment Index was revised up to 49.8 in April 2026 from a preliminary reading of 47.6, according to final data. Despite this modest upward revision, it remains the lowest level on record, underscoring the severe impact of the Iran conflict on consumer confidence. Sentiment weakened across all demographic groups, regardless of political affiliation, income, age, or education.
Expectations for business conditions worsened for both the short and long term, nearly returning to levels observed a year earlier, when reciprocal tariffs were first imposed. A two-week ceasefire and a slight decline in gasoline prices allowed sentiment to recoup only a small portion of its early-month losses. The conflict’s main effect on households continues to come through energy market disruptions and broader price pressures.
Inflation expectations rose sharply: year-ahead expectations jumped to 4.7% from 3.8%, the largest monthly increase since April 2025, while long-term expectations climbed to 3.5%, their highest level since October 2025.
