WASHINGTON (Reuters) – U.S. consumer sentiment deteriorated sharply in April and 12-month inflation expectations surged to the highest level since 1981 amid unease over escalating trade tensions.
The University of Michigan Surveys of Consumers on Friday said its Consumer Sentiment Index dropped to 50.8 this month from a final reading of 57.0 in March. Economists polled by Reuters had forecast the index falling to 54.5.
“This decline was pervasive and unanimous across age, income, education, geographic region and political affiliation,” said Surveys of Consumers Director Joanne Hsu.
“Consumers report multiple warning signs that raise the risk of recession: expectations for business conditions, personal finances, incomes, inflation, and labor markets all continued to deteriorate this month.”
(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)
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