Consumer Sentiment from the University of Michigan plummeted to a record low in its preliminary April release. Consumers feel worse about their personal financial situation than at any point since 1951- that includes the depths of the Great Financial Crisis. A few other notable events when consumers felt better than they do today are the entirety of the Vietnam war, Black Monday, and when inflation was nearly 15% in the 1980s.
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.
Joanne Hsu, Survey of Consumers Director – April 10, 2026
It is important to note that this data reflects consumer attitudes prior to the announcement of a temporary ceasefire in Iran, and sentiment will undoubtably improve if the conflict moderates or is resolved. However, Consumer Sentiment was near a historic low even before the start of the war, and it will take time for consumers to feel confident in their personal finances again. In addition, consumers highlighted concerns regarding high prices and weakening asset values – issues that are unlikely to disappear quickly. If these concerns translate into reduced spending, it could have wide-reaching implications for the broader market as consumer spending accounts for approximately 70% of GDP.