Consumer Sentiment Tanks in April on Recession Fears

Consumer sentiment in the U.S. plunged further this month on trade uncertainty, with the share of Americans expecting unemployment to rise in the year ahead increasing to the highest since 2009.

A closely watched index of consumer sentiment nosedived to 50.8 in April from 57 last month, continuing a recent downward trend stoked by concerns about trade, jobs and inflation.

The preliminary reading, from a survey by the University of Michigan, was much weaker than the 54.6 that economists polled by The Wall Street Journal expected.

It is one of the weakest readings in the past decade.

Consumers’ expectations for inflation in the year ahead surged to 6.7%. It was the highest reading since 1981.

“Consumers report multiple warning signs that raise the risk of recession: expectations for business conditions, personal finances, incomes, inflation, and labor markets all continued to deteriorate this month,” survey director Joanne Hsu said.

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