US consumer sentiment fell in April to one of lowest levels since 1970s

According to Bloomberg, US consumer sentiment fell significantly in April, with inflation expectations hitting new highs on concerns about the impact of tariffs on the country's economy.

The University of Michigan reports the consumer sentiment index fell to 52.2 this month from 57 in March, posting one of the lowest readings since the 1970s. 

Now, Americans project that inflation will accelerate at an annual rate of 4.4% over the next five to ten years. This figure is the highest since 1991. At the same time, US consumers forecast a 6.5% increase in prices over the next year. Despite the reading down from the preliminary one of 6.7%, year-ahead inflation expectations remain the highest since 1981.

In addition, US President Donald Trump's trade policies have intensified worries about the labor market. Two-thirds of respondents believe that their inflation-adjusted income will fall in the coming year. Nearly as many expect unemployment to grow, Bloomberg reports.