Consumer Sentiment at Record Low Despite Upward Revision

11:58 AM EDT, 04/24/2026 (MT Newswires) -- US consumer sentiment improved from an initial April estimate, but remained at a record low as near-term inflation expectations logged the biggest monthly increase in a year, final University of Michigan survey results showed Friday.

The main sentiment index fell 6.6% to 49.8 from last month. The consensus in a Bloomberg-compiled poll expected the April reading to be revised to 48.5 from the preliminary estimate of 47.6.

The index remained at an all-time low despite the upward revision, Jefferies said in a note.

"The Iran conflict appears to influence consumer views primarily through shocks to gasoline and potentially other prices," Surveys of Consumers Director Joanne Hsu said. "In contrast, military and diplomatic developments that do not lift supply constraints or lower energy prices are unlikely to buoy consumers."

The year-ahead inflation outlook jumped to 4.7% this month from 3.8% in March, marking the biggest one-month gain since April, the University of Michigan survey showed. The five-year inflation projection climbed up to 3.5%, the highest since October, from 3.2% a month ago.

Energy prices have surged in the aftermath of the US-Israel war with Iran that has disrupted shipments through the Strait of Hormuz. President Donald Trump extended a ceasefire with Iran earlier in the week, though he said the naval blockade of Iranian ports would continue.

A quarter-long closure of the crucial Strait of Hormuz will likely push US inflation higher by 0.6 percentage points this year, researchers at the Federal Reserve Bank of Dallas said last week.

The gauge for current economic conditions fell to 52.5 in April from 55.8 in March, while the expectations measure declined 7% to 48.1, the University of Michigan reported.

"Decreases in sentiment were seen across political party, income, age, and education," Hsu said. "Expected business conditions declined for both short and long time horizons, nearly matching year-ago readings when the reciprocal tariff regime was implemented."

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