Consumer sentiment hits record low, inflation fears rise amid Iran war
High gas prices are displayed at a gas station in Los Angeles, California, on April 9, 2026.
Mario Tama | Getty Images
Consumer outlook fell to a record low in April as fears grew about rising energy prices and the broader impact of the Iran war, a University of Michigan survey showed Friday.
The university’s consumer confidence index fell to 47.6, a 10.7% decrease compared to March, falling to its lowest level in history. Current conditions and expectations indexes also recorded double-digit monthly declines.
The decline in sentiment coincided with a sharp rise in inflation expectations; respondents saw prices rise 4.8% in one year; That’s a full percentage point decline from the March reading to the highest level since August 2025.
Survey Director Joanne Hsu said survey comments “show that many consumers blame the Iran conflict for negative changes in the economy.”
However, Hsu also noted that most of the talks were completed before the April 7 ceasefire.
“Economic prospects will likely improve once consumers gain confidence that supply disruptions from the Iran conflict are over and gas prices are softening,” he said.
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