Worried About Prices? You’re Not Alone, Survey Finds
Americans are feeling less confident about the economy this month, according to a new survey from the University of Michigan.
The survey, released Friday, shows that consumer sentiment — or how people feel about the economy — fell sharply in April. The score dropped to 50.8, down from 57.0 in March. That’s lower than what experts were expecting and is one of the lowest readings ever recorded since the survey began in 1952.
Why the drop?
The main reason: inflation fears are rising again.
People now expect prices to go up by 6.7% over the next year — the highest expected jump in inflation since 1981. Last month, that number was 5%. Even looking five years ahead, people think prices will keep rising — the expectation is now 4.4%.
What else did the survey show?
- Current economic conditions dropped to 56.5 — that’s down more than 11% from last month.
- Future expectations (how people feel about what’s ahead) dropped to 47.2, the lowest since May 1980.
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Overall, this means people are feeling more nervous about their money, jobs, and the economy in general.
Stocks and markets react
After the report came out, stock markets fell and government bond yields went up — showing that investors are paying close attention to these concerns too.
Economist Samuel Tombs summed it up by saying, “Consumers have spiraled from anxious to petrified.”
Who’s worried?
According to the survey, everyone — no matter their age, income, or political views — reported feeling more concerned this month. Many are worried about:
- Their personal finances
- Rising prices
- Job security
- The overall health of the economy
In fact, fears about unemployment are now the highest they’ve been since 2009.
What’s causing the concern?
One reason for the rising inflation fears is talk of new tariffs from President Donald Trump. Some experts believe these tariffs could make goods more expensive and slow down economic growth.
Although some recent data showed prices easing a bit in March, the survey collected responses between March 25 and April 8, just before Trump announced a temporary pause on the new tariffs.
What’s next?
Economists and government officials are keeping a close eye on consumer expectations because they can affect real behavior — like how people spend, save, or invest.
For now, though, many Americans are feeling uneasy about what’s ahead.
