US Consumer Confidence Takes a Hit in April

The latest report from the University of Michigan reveals a concerning trend: US consumer sentiment has declined sharply in April, with the index dropping to 52.2. This represents an 8.4% decrease from March and a staggering 32.4% fall compared to April 2024.

Current Economic Conditions and Expectations Worsen

The Current Economic Conditions Index also saw a downturn, falling by 6.3% from the previous month and 24.3% year-over-year, landing at 59.8 points. Meanwhile, the Index of Consumer Expectations experienced a more dramatic decline, with a 10.1% monthly and 37.8% annual drop, settling at 47.3.

Expert Insights on the Decline

"Consumer sentiment fell for the fourth consecutive month, with an 8% plunge from March. The April dip in current conditions was modest, but the expectations index saw a significant plummet, reflecting concerns over personal finances and business conditions," noted Joanne Hsu, Director of Surveys of Consumers, in the report.