US Consumer Confidence Plunges to Historic Low

(MENAFN) US household confidence deteriorated in April, reaching the lowest point ever recorded, as families became increasingly uneasy about rising prices and the economic consequences tied to the Iran war. This was revealed in final figures published Friday by the University of Michigan.

The institution’s finalized consumer sentiment indicator slid to 49.8 in April, compared with 53.3 in March, representing a 6.6% drop over the month. Additionally, the reading declined by 4.6% relative to the same period a year earlier.

The gauge measuring present economic circumstances decreased to 52.5 from March’s 55.8. Meanwhile, the metric tracking consumer outlook fell to 48.1, down from 51.7 previously.

“Consumer sentiment ticked down 3.5 index points this month, now comparable to the trough seen in June 2022,” stated Joanne Hsu, head of the university’s Surveys of Consumers.

Hsu explained that decreases in confidence were evident across political affiliations, income brackets, age categories, and education levels. She also indicated that anticipated business conditions weakened over both the near and distant future.

She added that confidence showed only slight improvement after a temporary two-week cease-fire was declared and fuel costs eased marginally.

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