-- The University of Michigan's preliminary consumer sentiment index fell to 47.6 in April from 53.3 in March, much lower than expectations for an increase to 51.5 in a survey compiled by Bloomberg.
The current conditions index decreased to 50.1 in April from 55.8 in March, while the expectations reading fell to 46.1 from 51.7.
"Demographic groups across age, income, and political party all posted setbacks in sentiment, as did every component of the index, reflecting the widespread nature of this month's fall," said Michigan, adding that consumers cite the Iran conflict for unfavorable changes to the economy.
Respondents saw one-year inflation expectations at 4.8%, up sharply from 3.8% in March, while five-year inflation expectations increased to 3.4% from 3.2%.
The twice-monthly Michigan Sentiment index measures consumer sentiment early in the current month (the preliminary estimate) and is then revised later in the month (the final estimate). The headline index is a combination of the current assessment and expectations for the near future.
An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.