The
52.2
reading
for
April
represents
an
8.4%
decline
from
March
and
a
32.4%
drop
compared
to
one
year
ago.
Perceptions
of
current
economic
conditions
suffered
a
6.3%
monthly
drop,
and
consumer
expectations
fell
by
10.1%
month
over
month.

The
decline
in
consumer
sentiment
is
most
prevalent
among
the
middle
class,
but
it’s
happening
across
all
demographics
and
political
affiliations.

Inflation
expectations
for
the
next
year
jumped
from
5%
in
March
to
6.5%
in
April.

It’s
no
secret
as
to
why
consumers
feel
jittery
about
the
economy.
The
announcement
of
Trump’s
new
global
tariff
regime
on
April
2
shocked
the
world
with
its
scope
and
scale.

Markets
cratered
on
the
news,
forcing
Trump
to
pause
the
levies
just
hours
after
they
took
effect
on
April
9.

The
spring
homebuying
season
was
expected
to
be
positive
this
year,
but
the
drop
in
consumer
confidence

has
thrown
things
into
flux.
While
it
will
likely
be
later
in
the
summer
before
data
can
definitively
show
how
the
housing
market
is
impacted,
the

tariff
announcement
has
contributed
to

mortgage
rates
returning
to
the
7%
range
and
to
a

substantial
drop
in
weekly
mortgage
applications.

Many
buyers
will
back
off
for
now
and
take
a
wait-and-see
approach
until
the
dust
settles
on
the
volatility
caused
by
the
tariff
announcement.
This
comes
in
spite
of

rapidly
rising
inventory
in
much
of
the
country,
some
of
which
could
be
tied
to
sellers
wanting
to
get
out
ahead
of
any
major
long-term
negative
impacts
of
the
tariffs.

Trump’s
pause
stopped
the
economic
bleeding,
and
stock
indexes
have
recovered
much
of
the
ground
they
lost
between
the
announcement
and
the
pause.
But
uncertainty
remains
high
heading
into
May.

The
global
tariff
pause
is
only
for
90
days,
and
the

astronomical
tariff
on
China
remains
in
effect,
although
Trump
has
signaled
that
the
145%
currently
levied
against
the
country
is
“too
high.”
Administration
officials
have
indicated
that
the
president
is
ready
to
make
a
deal,
but
China
has

denied
reports
of
ongoing
negotiations.