ISTANBUL

Consumer sentiment in the US dropped 8% monthly in April, marking its lowest level since July 2022, according to final results from the University of Michigan's consumer survey released Friday.

The index of consumer sentiment decreased 4.8 points to 52.2 in April, from 57 in March, marking the fourth straight monthly fall.

The market expectation and the preliminary estimates by the University of Michigan for the index was to come in at 50.8 for the month.

"While the April decline in current conditions was modest, the expectations index plummeted with drop-offs in personal finances as well as business condition. Expectations have fallen a precipitous 32% since January, the steepest three-month percentage decline seen since the 1990 recession," Surveys of Consumers Director Joanne Hsu said in a statement.

"Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead," she added.

Meanwhile, short-term inflation expectations jumped to 6.5% in April from the previous month's 5%.

The rise marked the highest reading since 1981 and marking four consecutive months of unusually large increases of 0.5 percentage points or more.

"Inflation expectations evolved with major trade policy announcements this month. After the April 9 partial pause in tariff increases, inflation expectations ebbed but remained substantially elevated relative to March," Hsu noted.

The long-term inflation expectations also increased to 4.4% from 4.1% in March.