“Consumer sentiment sank about 11 percent this month, extending a decline that began with the start of the Iran conflict, and is currently about 9 percent below 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. One-year expected business conditions plunged about 20 percent and is now 6 percent below last April. Assessments of personal finances declined about 11 percent, with consumers expressing a substantial increase in concerns over high prices and weaker asset values. Buying conditions for durables and vehicles worsened, again on the basis of high prices. Open ended comments show that many consumers blame the Iran conflict for unfavorable changes to the economy… Year-ahead inflation expectations surged from 3.8 percent in March to 4.8 percent this month, the largest one-month increase since April 2025.”

“The current reading exceeds those seen in 2024 and remains well above the 2.3-3.0 percent range seen in the two years pre-pandemic. Long-run inflation expectations ticked up from 3.2 percent last month to 3.4 percent this month, the highest reading since November 2025. In 2024, values ranged between 2.8 percent and 3.2 percent, while in 2019 and 2020, they were consistently below 2.8 percent,” says the University of Michigan’s Surveys of Consumers with more bad news for America.