U.S. consumer sentiment fell to an all-time low in May 2026 as gasoline prices and inflation fears intensified amid the Iran conflict, according to final data from the University of Michigan Surveys of Consumers.
The Consumer Sentiment Index dropped to 44.8 from 49.8 in April, marking a third consecutive monthly decline and falling below the prior trough recorded in June 2022. Current Economic Conditions fell to 45.8 and the Index of Consumer Expectations declined to 44.1.
Survey director Joanne Hsu said 57 percent of consumers spontaneously mentioned that high prices were eroding personal finances, up from 50 percent in April. Lower-income households and those without college degrees posted the steepest drops. Year-ahead inflation expectations rose to 4.8 percent, while long-run expectations climbed to 3.9 percent.
Republican and independent sentiment reached the lowest readings of the current presidential administration, according to the survey. Supply disruptions in the Strait of Hormuz continued to push fuel costs higher, compounding tariff-related price pressures cited by economists.
Economists polled by Reuters had expected the index to hold at 48.2 rather than fall further to 44.8. Long-run inflation expectations among Republicans more than doubled their February 2025 reading on a monthly basis, the survey noted. Interviews for the May release were conducted between April 21 and May 18. The prior historical low before this reading was June 2022 during the post-pandemic inflation spike.
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Sources:
https://dailycuratednews.substack.com/p/news-headlines-may-22-2026