US consumer sentiment falls more than expected as inflation fears rise
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U.S. consumer sentiment and Americans' view on the economy both fell more than expected in April, as inflation expectations rose.
The University of Michigan's consumer sentiment index released Friday fell to 77.9, down from 79.4 in March. Economists polled by LSEG had expected a reading of 79.
U.S. consumer sentiment declined in April while inflation expectations rose. (Gabby Jones/Bloomberg via Getty Images / Getty Images)
American households are turning more pessimistic as higher prices for everyday items take their toll.
The latest University of Michigan read on consumer sentiment for April fell to 79.3 after coming in at 82.5 last month. Economists only expected that index to fall to 82.2.
«A slight uptick in inflation expectations in April reflects some frustration that the inflation slowdown may have stalled,» Surveys of Consumers Director Joanne Hsu said in a statement.
The survey's reading of one-year inflation expectations increased to 3.1% in April from 2.9% in March, rising just above the 2.3-3.0% range seen in the two years before the COVID-19 pandemic. The survey's five-year inflation outlook rose to 3.0% from 2.8% in the prior month.
Meanwhile, inflation expectations for the next 12 months and beyond rose.
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