US Consumer Sentiment Slumps To Record Low In April; Inflation Expectations Rise

U.S. consumer sentiment fell to a record low in April, as households remained concerned about rising inflation driven by the Iran conflict, despite a ceasefire. Disruptions in the Strait of Hormuz have pushed up oil prices, leading to higher gasoline, diesel, and broader commodity costs that are weighing on consumers. Inflation expectations also jumped, with short-term expectations reaching 4.7%, reinforcing concerns that interest rates may stay elevated. Economists expect these pressures to slow consumer spending, particularly among low- and middle-income households.