Consumer Sentiment Hits 74-Year Low as Wage Gains Fail to Keep Pace with Inflation
American consumer confidence plummeted to its lowest level in the survey's 74-year history, with lower-income households especially squeezed by rising prices. While wealthy consumers remain strong, the K-shaped recovery is widening as average workers struggle with energy costs and everyday expenses.
Historic Low in Consumer Confidence
Consumer sentiment in the U.S. has officially never been worse. The University of Michigan's final April reading came in at 49.8, the lowest in the survey's 74-year-history.
Two-Tiered Recovery Deepening
The bottom half of the income distribution experiences a very different reality. "The lower tier was already strained, and now it's really hard," Long said. That divide is what economists increasingly call the "K-shaped" recovery, with the top earners rising and the rest falling.
Wealthy Consumers Remain Resilient
Disney recently confirmed that its domestic park bookings and cruise reservations remained strong through the second half of 2026. "That's the $150,000-and-above crowd," Long said.
Growing Reliance on Credit
She added she can see the uptick in more people applying for personal loans, or turning to credit cards.