Rising inflation and increased concerns about the economic outlook have caused US consumer confidence to drop to a historic low.

Against the backdrop of ongoing turmoil in the Middle East and soaring energy prices, consumer confidence in the United States has significantly deteriorated. The latest data shows that the US consumer confidence index has fallen to a historic low, reflecting the public's growing concerns about inflation and economic outlook. According to data released by the University of Michigan, the preliminary consumer confidence index in early April dropped to 47.6, a sharp decline from March's 53.3, lower than almost all market expectations. Specifically, the current conditions index fell to a historic low of 50.1, while the consumer expectations index dropped to the lowest level since 1980. Inflation expectations have risen significantly. Surveys show that consumers expect prices to rise by 4.8% in the next year, a substantial increase of 1 percentage point from March, marking the largest increase in nearly a year; long-term inflation expectations for the next 5 to 10 years have also risen to 3.4%. This change is closely related to the recent surge in energy prices, with gasoline prices in the US now exceeding $4 per gallon, reaching a new high since 2022. Analysts point out that the rising cost of energy is eroding residents' purchasing power, which may force consumers to cut back on discretionary spending, putting pressure on economic growth. Against the backdrop of uncertain job prospects and persistently high living costs, assessments of household financial conditions have also fallen to their lowest level since 2009. The survey director stated that many respondents attributed the deteriorating economic environment to supply chain disruptions and rising energy prices caused by the conflict in Iran. Despite the temporary ceasefire agreement reached between the US and Iran, the situation remains unstable, and Middle Eastern oil supplies have not fully recovered. Inflationary pressures are beginning to emerge. The latest Consumer Price Index (CPI) data shows a 0.9% month-on-month increase in March, the largest increase in nearly four years, with gasoline prices being a major driving factor. Economists predict that in the coming months, the rising costs of energy and fertilizers will further transmit to food prices, raising residents' cost of living.