American consumers are now more pessimistic about their personal finances than at any point in recent history, with a record 54 percent saying their financial situation is worse than it was a year ago because of higher prices, The Kobeissi Letter said in a tweet earlier today.
The latest reading marks a dramatic jump from levels seen in 2021 and is now even worse than the sentiment recorded during the 2008 global financial crisis.
According to the preliminary April survey, overall consumer sentiment dropped to 47.6, the lowest reading in the 70-year history of the index. This is below the previous record low seen in June 2022 and reflects widespread concern over inflation, fuel prices, and the economic fallout from recent geopolitical tensions.
A major driver behind the deterioration is the continued rise in prices, particularly fuel and everyday essentials. Consumers now expect inflation to rise 4.8 percent over the next year, the highest level since June 2025 and sharply above the previous month’s reading.
The survey suggests that inflation concerns remain deeply entrenched in public expectations, despite earlier hopes that price pressures were easing.