Evening Briefing Americas

US Consumer Sentiment Is at a Record Low

The war, inflation and more dark clouds on the horizon are feeding America’s doom loop.
A pedestrian walks past a pawn shop in downtown Los Angeles. Pawn shop loans are on the rise as US consumer sentiment dives.Photographer: Patrick T. Fallon/AFP

Another Friday has managed to deliver unpleasant news about the US economy. According to the University of Michigan, consumer sentiment fell in recent weeks to a record low, an historic reading likely fueled by the US-Israel war with Iran and the effect it’s had on already-bubbling inflation.

The preliminary April sentiment index plummeted to 47.6 from 53.3 in March. Americans expect prices to rise at an annual rate of 4.8% over the next year.