Consumer Sentiment Plunges Despite Economic Growth

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Consumer sentiment in the U.S. has crashed to a record low of 47.6 in April 2026, even as GDP grows and unemployment remains stable. The disconnect between the data and public perception has become a defining economic story, with high costs for essentials like groceries and housing fueling frustration despite cooling inflation.

Why it matters

The stark contrast between the technical indicators of a healthy economy and the public's grim outlook poses a major political challenge for the White House. Voters' anger over persistent high costs is translating into plummeting approval ratings for the president on economic issues, threatening the party's prospects in the upcoming midterm elections.

The details

Consumer sentiment, as measured by the University of Michigan, has hit a record low of 47.6 in April 2026, rivaling the darkest days of the 2022 inflation crisis. This comes even as GDP grows and unemployment holds steady, leaving economists struggling to describe the phenomenon with terms like 'vibecession' and 'boomcession'. The core of the public's frustration is the continued high costs of groceries and housing, which remain dramatically more expensive than a decade ago despite cooling inflation. Energy prices have also added to the anxiety, with volatility in oil markets keeping fuel costs elevated.

• The University of Michigan's preliminary April consumer sentiment reading was 47.6.
• President Trump's approval rating on the economy has hit a record low during his second term.