U.S. consumer sentiment fell in April to a record low as concerns over the economic fallout from the Iran war weighed on Americans, according to the University of Michigan’s final survey.
The sentiment index dropped to 49.8 from 53.3 in March, the lowest level in data going back to 1978. Consumers also raised one-year inflation expectations to 4.7% from 3.8%, while expected long-term inflation climbed to 3.5%, the highest since October.
Uncertainty tied to the conflict and higher fuel costs continued to pressure the outlook, with consumers expecting gas prices to rise by nearly 50 cents over the next year.
