(fxcue news) - Preliminary data released by the University of Michigan on Friday showed a continued slump by U.S. consumer sentiment in the month of April. The University of Michigan said its consumer sentiment index tumbled to 50.8 in April after plunging to 57.0 in March. Economists had expected the consumer sentiment index to fall to 54.5. With the much bigger than expected decrease, the consumer sentiment index dropped to its lowest level since hitting 50.0 in June 2022. "Sentiment has now lost more than 30% since December 2024 amid growing worries about trade war developments that have oscillated over the course of the year," said Surveys of Consumers Director Joanne Hsu. She added, "Consumers report multiple warning signs that raise the risk of recession: expectations for business conditions, personal finances, incomes, inflation, and labor markets all continued to deteriorate this month." HSU noted the interviews for this release were conducted between March 25 and April 8, closing prior to President Donald Trump's partial tariff reversal on April 9. The extended slump by the headline index came as the current economic conditions index dove to 56.5 in April from 63.8 in March and the index of consumer expectations plunged to 47.2 in April from 52.6 in March. The report also said year-ahead inflation expectations surged to 6.7 percent in April from 5.0 percent in March, reaching the highest reading since 1981. Hsu noted the spike by year-ahead inflation expectations, which marked four consecutive months of unusually large increases, was seen across all three political affiliations. Long-run inflation expectations also climbed to 4.4 percent in April from 4.1 percent in March, reflecting a particularly large jump among independents.