Economic Buzz: US UoM consumer sentiment slightly improves but remains at record low

Consumer confidence in the United States showed a small improvement in April during a temporary two-week ceasefire between the US and Iran. However, it is still at its lowest level ever recorded, according to new data from the University of Michigan.

The Index of Consumer Sentiment rose to 49.8, slightly higher than economists? expectations of 48.5. Despite this increase, it remains lower than levels seen during the global financial crisis, the COVID-19 pandemic, and the inflation surge after Russia?s invasion of Ukraine.

Overall, consumer sentiment dropped 6.6% compared to last month and is down 4.6% from a year ago.

The report also showed that people expect prices to rise faster. Inflation expectations for the next year increased to 4.7% in April from 3.8% in March, marking the biggest jump in a year.

Long-term inflation expectations also went up to 3.5%, higher than recent months. This suggests that many Americans believe inflation will continue to stay elevated, compared to the lower levels seen before the pandemic.

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