American Consumers Serve Up Bleak Outlook on Economy

The University of Michigan’s closely watched sentiment index fell to its lowest levels ever among Democrats and independents

By Harriet Torry


Surveys this year ​suggest growing economic worry among households a​nd businesses. PHOTO: RICHARD B. LEVINE/ZUMA PRESS


Key Points

Consumer sentiment fell to 52.2 in April, from 57 in March, according to the University of Michigan.


Consumers expect prices to surge 6.5% over the next year, the highest reading since 1981.


Concerns about higher prices and a weaker labor market suggest fears of stagflation.

American households ended April feeling much worse about the economy than they did in March, according to a closely watched measure of consumer sentiment.

The University of Michigan said Friday its final index of consumer sentiment for April was 52.2, down from 57 in March, a drop of 8% from the previous month. The index hit its lowest levels ever for Democrats and for independents.