WASHINGTON (Reuters) -U.S. consumer sentiment ebbed for a fourth straight month in April amid concerns about the economic impact of tariffs. The University of Michigan Surveys of Consumers said on Friday its Consumer Sentiment Index came in at 52.2 this month. While that was an improvement from a reading of 50.8 two weeks ago, the […]
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US consumer sentiment remains weak in April on tariffs concerns
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WASHINGTON (Reuters) -U.S. consumer sentiment ebbed for a fourth straight month in April amid concerns about the economic impact of tariffs.
The University of Michigan Surveys of Consumers said on Friday its Consumer Sentiment Index came in at 52.2 this month. While that was an improvement from a reading of 50.8 two weeks ago, the index was down sharply from 57.0 in March. Economists polled by Reuters had forecast the final index reading unchanged at 50.8.
“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,” said Surveys of Consumers Director Joanne Hsu.
“Labor market expectations remained bleak. Even more concerning for the path of the economy, consumers anticipated weaker income growth for themselves in the year ahead.”
Consumers’ 12-month inflation expectations came in at 6.5%, down from 6.7% earlier this month and up from 5.0% in March. Inflation expectations were still the highest since 1981 and April marked the fourth consecutive month of unusually large rises of 0.5 percentage points or more.
“Inflation expectations evolved with major trade policy announcements this month,” said Hsu. “After the April 9 partial pause in tariff increases, inflation expectations ebbed but remained substantially elevated relative to March.”
Long-run inflation expectations increased to 4.4%, unchanged from two weeks ago but up from 4.1% in March. The jump in expectations was among Independents.
(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)