Consumer sentiment hits historic low amid geopolitical turmoil.

Consumer sentiment hits historic low amid geopolitical turmoil. The Michigan Consumer Sentiment Index plummeted 5.7 points to 47.6 in April, marking its lowest level on record and missing analyst forecasts of 51.6. The nearly 11 percent monthly decline was primarily driven by escalating Iran conflict tensions. More concerning, year-ahead inflation expectations surged dramatically from 3.8 percent to 4.8 percent, representing the largest single-month jump since April 2025. This sharp deterioration in consumer confidence signals potential headwinds for economic growth and consumer spending, which typically drives roughly 70 percent of U.S. economic activity. The combination of geopolitical uncertainty and rising inflation concerns suggests households are increasingly pessimistic about near-term economic conditions and purchasing power.