The latest University of Michigan U.S. consumer sentiment survey revealed that consumer optimism plunged further regarding the economy in April vs. a month prior.

The U of M’s index for consumer sentiment fell to 50.8 in April from 57.9 in March, reflecting an 11% decline month-over-month and to its second lowest point since 1952. Additionally, April’s figure was down 34.2% year-over-year. Economists polled by Reuters forecasted a preliminary reading of 54.5 in April.

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The Survey of Consumers director noted that April saw broad declines consistently across all groups by age, income, education, geographic region and political affiliation. Sentiment has now fallen fourth straight months and is down 30% since December 2024.

University of Michigan Consumer Sentiment Index — Month-to-Month

source: tradingeconomics.com

The survey noted that consumers pointed to the significant uncertainty surrounding trade war developments, noting that warning signs for a potential recession — personal finances, incomes, inflation and labor markets — continued to increase in April.

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According to the survey results, long-run inflation increased from 4.1% in March to 6.7% in April.

Conversely, the survey’s index for year-ahead expectations surged to 6.7% in April — the highest reading since 1981 and marking four consecutive monthly increases of 0.5-percentage-points or more. The monthly reading was well above the range of 2.3% to 3.0% in the two years preceding the COVID-19 pandemic.