U.S. Consumer Sentiment Down 31% Since January 2025

Consumer sentiment in the U.S. fell sharply in April 2025, with the University of Michigan’s final index dropping to 52.2, down 8% from 57 in March, marking record lows for Democrats and independents. A related index measuring consumers’ expectations for the future declined 32% since January, the steepest three-month drop since the 1990 recession. Inflation expectations surged, with respondents predicting a 6.5% price increase over the next year, up from 5% in March, the highest level since 1981. Sentiment among Democrats plunged to 34.4, the lowest ever recorded, while sentiment among Republicans rose to 90.2, its highest since the end of Trump’s last presidential term. The survey, conducted from March 25 to April 21, reflected fears of stagflation fueled by concerns over higher prices, a weakening labor market, and uncertainty over Trump's tariff policies. Despite consumer gloom, hard economic metrics such as hiring, spending, and inflation have remained relatively stable since Trump resumed office. The survey noted growing pessimism about income growth, raising concerns that slower consumer spending could worsen the economic outlook. Politically, Republicans reported greater optimism, viewing tariffs as long-term positives for the economy, while independents and Democrats grew more worried about future risks. Overall, the University of Michigan's findings depict a widening partisan divide in economic confidence, intensified by volatile trade policy and inflation fears.