(Max Nesterak/States Newsroom)

Consumer sentiment fell more than 10% in the last month, and according to the University of Michigan’s latest consumer survey, it’s the fourth straight month of decline.

“Sentiment has now lost more than 30% since December 2024 amid growing worries about trade war developments that have oscillated over the course of the year. 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,” Surveys of Consumers Director Joanne Hsu said in a news release.

Hsu added that the drop was “pervasive and unanimous” across multiple factors including age, income, education, geographic region and political affiliation.

The index is published monthly by the university, and is an indicator of consumers’ confidence in the health of the U.S. economy.

The results, released Friday, came just two days after President Donald Trump reversed course on sweeping tariffs on imported goods, pausing them for 90 days, while keeping in place an across-the-board 10% duty as well as separate tariffs on specific commodities.

While the university’s survey concluded the day before Trump’s announced pause, Hsu said the share of consumers expecting unemployment to rise in the year ahead has been increasing for five consecutive months and is now more than double the November 2024 reading and the highest since the Great Recession.

“This lack of labor market confidence lies in sharp contrast to the past several years, when robust spending was supported primarily by strong labor markets and incomes,” Hsu said.

Earlier this month, Federal Reserve Chairman Jerome Powell told business journalists at a speech in Virginia that while there was a “still solid” outlook on economic growth, surveys of households and businesses reported “dimming expectations and higher uncertainty” in reaction to Trump administration policies, especially as they related to trade.

The University of Michigan survey noted that inflation expectations for the coming year “surged from 5.0% last month to 6.7% this month,” which was the highest reading in nearly 45 years. That rise was also seen across the political spectrum.

“Long-run inflation expectations climbed from 4.1% in March to 4.4% in April, reflecting a particularly large jump among independents,” Hsu said.

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