US consumers face falling real wages as sentiment hits 74-year low
Updated
Updated · Fortune · May 10
US consumers face falling real wages as sentiment hits 74-year low
8 articles · Updated · Fortune · May 10
The University of Michigan’s final April sentiment reading fell to 49.8, while average hourly earnings rose 3.6% and April inflation is expected near 4%.
Economists say the Iran war-driven energy shock, with US petrol above $4.55 a gallon, will leave real pay flat to negative in April and definitely negative in May.
Job growth remained positive at 115,000 in April and unemployment held at 4.3%, but economists say lower-income households are cutting fuel use and relying more on debt.
Is soaring household debt the hidden crack that will finally shatter the resilient U.S. economy?
With stocks at record highs, why do a majority of Americans feel the country is in a recession?
As the economy splits into 'K' and 'E' shapes, what happens when the struggling majority can no longer spend?
U.S. Consumer Confidence Hits Historic Low in April 2026: Inflation Fears and Global Turmoil Drive Economic Anxiety
Overview
In April 2026, consumer confidence collapsed to unprecedented lows, driven by a significant surge in both short-term and long-term inflation expectations. This sharp rise left households deeply concerned about their future purchasing power and signaled a profound shift in how consumers view the economy. The simultaneous increase in year-ahead and five-year inflation outlooks created widespread anxiety about persistent price pressures. As a result, consumers became more pessimistic, anticipating a prolonged period of higher costs. This dramatic change in sentiment highlights the critical role of inflation expectations in shaping economic outlook and signals potential challenges ahead for policymakers.