Overview

• The University of Michigan's April 2025 survey recorded an 11% drop in consumer sentiment, bringing the index to 50.8, the second-lowest reading since records began in 1952.
• Inflation expectations surged to 6.7% for the next year, the highest level since 1981, with five-year expectations climbing to 4.4%, marking sustained consumer anxiety over rising prices.
• Unemployment fears have intensified, with the share of respondents expecting job losses reaching its highest level since the Great Recession in 2009.
• The sentiment decline was consistent across all demographics, including age, income, education, and political affiliation, signaling widespread economic pessimism.
• Recent volatility in trade policy, including a 90-day pause on aggressive tariffs, has added to economic uncertainty, with concerns about recession risks and reduced consumer spending growing.