US consumer sentiment declined for the fourth consecutive month in April, driven by concerns over tariffs and economic uncertainty. The University of Michigan’s Consumer Sentiment Index fell to 52.2, down from a reading of 57.0 in March.
According to the Surveys of Consumers Director Joanne Hsu, consumers are worried about trade policy uncertainty and potential inflation resurgence. Labor market expectations remain bleak, with consumers expecting weaker income growth in the coming year.
Inflation expectations rose to 6.5%, the highest since 1981, despite a recent tariff pause. Long-run inflation expectations increased to 4.4%, up from 4.1% in March.
The slump in consumer sentiment is attributed to the ongoing impact of tariffs on economic growth and inflation. As trade policy announcements continue to affect consumer confidence, economists expect the trend to persist.
Source: https://www.reuters.com/business/us-consumer-sentiment-remains-weak-april-tariffs-concerns-2025-04-25