Consumer confidence plummeted to record low this month, study reveals though spending shows a glimmer of hope

Consumer confidence across the United States plunged to an all-time low this month, as Americans grapple with anxiety over the war in Iran, new data revealed. The University of Michigan’s long-running Survey of Consumers tracks how Americans feel about the economy, their personal finances and spending — shaped by factors like inflation, the cost of living and global conflicts. Earlier this month, preliminary data showed the consumer sentiment dropped a drastic 11% to a historic low of 47.6 — a level below anything recorded in the post–World War II era, including during the Great Recession, the pandemic slump, and the subsequent surge in inflation, CNN reported. April’s final reading showed a modest uptick to 49.8, but it remains notably below last month’s 53.3, raising continued concerns, according to the Wall Street Journal. This month’s record-low data reflects the troubling sentiment about the country’s economic stability and the concerns weighing on Americans right now, including the war in Iran, according to the survey’s director, Joanne Hsu. “Open-ended comments show that many consumers blame the Iran conflict for unfavorable changes to the economy,” Hsu said, CNN reported. “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,” she added.It is important to note, however, that survey responses for April were collected before President Donald Trump announced the ceasefire and subsequent ceasefire extension with Iran this week.Hsu believes consumer sentiment “will likely improve after consumers gain confidence that the supply disruptions stemming from the Iran conflict have ended and gas prices have moderated.”While it’s not surprising that consumer confidence is low due to stubborn inflation, a troubling job market, and political tensions within the US and abroad, reports suggest that consumer...