• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

US consumer sentiment plunges to lowest level in over a decade as trade tensions escalate

by April 12, 2025
by April 12, 2025

Consumer confidence in the United States has slumped to its weakest level in over ten years, undercut by escalating trade tensions and growing fears of inflation and job losses.

The latest survey from the University of Michigan, released Friday, revealed that its closely watched consumer sentiment index dropped to 50.8 in April from 57 the previous month.

This marked not only a continued deterioration but also one of the lowest readings since the global financial crisis.

The figure came in well below economists’ expectations of 54.6, according to a Wall Street Journal poll.

The survey’s director, Joanne Hsu, warned of “multiple warning signs” flashing across the economy, with pessimism spreading uniformly across demographics.

He said:

This decline was pervasive and unanimous across age, income, education, geographic region and political affiliation.

Expectations for business conditions, personal finances, incomes, inflation, and labor markets all continued to deteriorate this month.

The survey was conducted from March 25 to April 8, a period bracketed by significant policy announcements.

President Trump’s April 2 declaration of “Liberation Day” tariffs set the tone, triggering a sharp sell-off in financial markets.

Though Trump later announced a 90-day pause on certain measures, he maintained blanket tariffs on nearly all imports, raising fears of prolonged economic strain.

Source: The Wall Street Journal

Inflation fears reach new heights

The University of Michigan survey found that consumers’ short-term inflation expectations have soared to levels not seen since 1981.

Respondents now expect prices to rise by 6.7% over the coming year, a sharp increase from 5% in March.

Long-term inflation forecasts also climbed, reaching 4.4% for the next five years.

These expectations reflect the growing anxiety among consumers as Trump escalated tariffs on Chinese goods to 125%, with Beijing retaliating in kind.

Steel, aluminum, and automotive imports remain subject to steep duties, contributing to a sense of mounting economic pressure.

Hard data, such as employment figures and retail sales, have so far offered a mixed picture.

Hiring continues at a healthy clip, but softer retail sales in recent months hint that households could soon tighten their belts.

Federal Reserve Chair Jerome Powell sought to temper concerns, saying last week:

“Sometimes the surveys are very negative, but they keep spending. People spent right through the pandemic, and they spent right through this time of higher inflation.”

Wall Street jitters and recession risks loom larger

Market volatility, intensified by tariff hikes, has rattled even affluent consumers whose spending has buoyed the economy through recent years of high inflation.

Bill Adams, chief economist at Comerica Bank, cautioned that sustained market turbulence could finally dampen their confidence.

“Wealthy consumers’ stock market gains kept the economy growing in 2024 despite high prices, but the wealthy won’t feel confident enough to keep spending if this keeps up,” Adams noted in an analyst report.

Adding to the chorus of concern, BlackRock chief executive Larry Fink likened the current environment to the uncertainty of the 2008 financial crisis.

We’ve seen periods like this before when there were large, structural shifts in policy and markets — like the financial crisis, Covid-19 and surging inflation in 2022.

“We always stayed connected with clients, and some of BlackRock’s biggest leaps in growth followed,” he added.

JPMorgan Chase CEO Jamie Dimon also weighed in, describing the outlook as fraught with risks.

“The economy is facing considerable turbulence, with the potential positives of tax reform and deregulation and the potential negatives of tariffs and ‘trade wars,’” Dimon said following the bank’s quarterly earnings release.

As both soft data and consumer sentiment sour, the durability of the US economy appears increasingly in question.

Analysts and policymakers alike will be watching closely to see whether spending habits hold or falter under the combined weight of inflation, policy shifts, and growing market unease.

The post US consumer sentiment plunges to lowest level in over a decade as trade tensions escalate appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
US stocks rebound as White House signals trade optimism with China
next post
Why Tesla stock is sliding another 4% on Friday

Related Posts

BYD’s July sales stall, casting doubt on 2025...

August 2, 2025

US stock plunge as jobs data disappoints and...

August 2, 2025

Moderna cuts 2025 revenue to $2.2B after UK...

August 2, 2025

Brazil antitrust watchdog probes Microsoft after Opera complaint...

August 2, 2025

Reddit shares surge 20% on record profit and...

August 2, 2025

OpenAI raises $8.3B as AI demand grows: report

August 2, 2025

Novo Nordisk stock posts worst week since 2021,...

August 2, 2025

Private equity giants accelerate push into UK pension...

August 2, 2025

Tesla ordered to pay $329M over fatal autopilot...

August 2, 2025

Why Friday’s sell-off in S&P 500 was not...

August 2, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • BYD’s July sales stall, casting doubt on 2025 delivery target

    August 2, 2025
  • US stock plunge as jobs data disappoints and tariff tensions rise

    August 2, 2025
  • Moderna cuts 2025 revenue to $2.2B after UK booster delay

    August 2, 2025
  • Brazil antitrust watchdog probes Microsoft after Opera complaint over edge browser practices

    August 2, 2025
  • Reddit shares surge 20% on record profit and strong revenue outlook

    August 2, 2025
  • OpenAI raises $8.3B as AI demand grows: report

    August 2, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 7

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025

Categories

  • Economy (2,057)
  • Editor's Pick (203)
  • Investing (185)
  • Stock (1,371)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

US stocks open in the green: Dow...

May 10, 2025

IMAX shares gain 3% amid market share...

July 12, 2025

Asia-Pacific markets mixed as Japan inflation data,...

February 21, 2025