Consumer confidence fell sharply in April, marking the fourth consecutive month of decline, according to the University of Michigan’s latest consumer sentiment report. The index dropped 11% from March and is now down more than 30% since December 2024 — a troubling trend that points to growing economic anxiety among U.S. households, including those in the Mid Valley.

The report cites widespread concerns about inflation, employment, and deteriorating personal finances as key factors driving sentiment down. The data reflects a noticeable shift from recent years, when strong job and income growth supported robust consumer spending.

Job Worries on the Rise

For the fifth month in a row, consumers reported rising uncertainty around employment. With confidence in labor market stability waning, households are reassessing their spending habits and financial plans. This contrasts sharply with the stability seen over the past several years, when job growth and wage gains helped offset price increases in essentials like housing and food.

In Mid Valley communities such as El Monte, Baldwin Park, and South El Monte, where many households are supported by hourly and middle-income wages, job security concerns may weigh heavily on economic decision-making this spring.

Inflation Expectations Surge

Adding to the unease, inflation expectations surged to 6.7% in April, up from 5.0% in February. This marks the highest reading since 1981, reflecting a growing belief that price increases may accelerate in the months ahead. The spike comes just weeks after new global tariffs were announced, which analysts say could further disrupt supply chains and push up consumer prices.

Consumers are already reporting strain on household budgets due to rising grocery bills, healthcare costs, and housing expenses. With these pressures mounting, the prospect of additional inflation has heightened fears of an economic downturn.

Outlook Remains Uncertain

With sentiment continuing to decline and inflation expectations rising, economists warn that the outlook could worsen before stabilizing. The combination of global trade tensions, price pressures, and weakening confidence may contribute to slower consumer spending through the summer.

For Mid Valley residents and business owners, the coming months may require careful financial planning as uncertainty becomes the dominant economic theme. Local experts suggest monitoring employment trends and household budgets closely as national trends ripple through regional markets.