SINKING SENTIMENT

Consumer sentiment in early April continued its tailspin after a brief rise in December. Sentiment plunged 11% and like last month’s decline, was pervasive across age, income, education, location, and political affiliation. Expectations for business conditions, personal finances, income, inflation, and labor markets all deteriorated. Year-ahead inflation expectations are at their highest reading since 10/1981, and the labor market index is now at levels only seen in recessions.