Consumer sentiment hits record low, inflation fears rise amid Iran war

• University of Michigan Consumer Sentiment plunged to a record low of 47.6 in April.
• One-year inflation expectations rose to 4.8%, while 5-10 year expectations were 3.4%.
• Factory orders were unchanged at 0%, but ex-transportation orders showed strength at +1.2%, the strongest since August 2023.

Consumer sentiment hit a record low in April, driven by mounting inflation fears and the impact of the Iran war. While some factory order data showed unexpected strength, the overall economic outlook remains weak, with rising inflation expectations posing a significant concern.