US Consumer Sentiment Falls for Fourth Month, Reaches Historic Low

U.S. consumer sentiment has significantly declined for the fourth consecutive month, with a preliminary reading of 50.8 in April, marking an 11% drop from March and the lowest level since the onset of the COVID-19 pandemic. This downturn reflects widespread anxiety over the economy, attributed largely to President Donald Trump's trade wars and inflation concerns, with 67% of respondents rating the government's performance on inflation and unemployment as poor. Expectations for inflation have surged to 6.7%, the highest since 1981, as consumers anticipate worsening personal finances and increased unemployment, now at levels not seen since the Great Recession. The trade tensions have intensified, with China retaliating against U.S. tariffs by raising its own tariffs on American goods to 125%. Economists warn that the persistent decline in consumer sentiment could foreshadow a recession, as rising costs impact household budgets and small business confidence. The overall sentiment decline has been noted across all demographics and regions, highlighting a pervasive unease among American consumers.