Consumers are worried about inflation and anticipate weaker income growth for themselves in the year ahead. U.S. consumer sentiment declined for the fourth-straight month in April to its lowest reading since July 2022 amid intensifying unease about economic policy developments and inflation. Sentiment plunged 8.4% in April to 52.2, down from 57.0 in March, according to The University of Michigan’s Consumer Sentiment Index.

The measure is down 32.4% year-over-year. With regard to current economic conditions, the index fell a “modest” 6.3% to 59.8. Looking ahead, however, the expectations index plummeted 10.1% to 47.3 — its lowest lowest point since 1980 — and is down 37.8% year-over-year.

“Expectations have fallen a precipitous 32% since January, the steepest three-month percentage decline seen since the 1990 recession,” said Joanne Hsu, director, surveys of consumers, University of Michigan. “While this month’s deterioration was particularly strong for middle-income families, expectations worsened for vast swaths of the population across age, education, income, and political affiliation.” Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead, according to Hsu.