UMich: U.S. Consumer Sentiment Drops to Record Low in May


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- U.S. consumer sentiment worsened in May, with the Index of 
Consumer Sentiment dropping 1.6 points to an all-time low 48.2, according to 
preliminary data from the University of Michigan's Surveys of Consumers 
released Friday (5/8) morning. Last month, soaring energy costs sparked by the 
ongoing U.S.-Israeli war on Iran led the index to plummet to a record-low 49.8, 
the first sub-50 reading in the survey's history.

   The Current Economic Conditions Index, measuring sentiment about personal 
finances and buying conditions, fell 4.7 points, or 9%, from April to 47.8. 
Year-on-year, the index was down 18.8%.

   The Index of Consumer Expectations, which reflects the economic outlook over 
the next 12 months, in contrast edged higher by 0.4 points to 48.5. Last month, 
the index fell below the 50-point mark for the first time since May 2025.

   The decline in the Current Conditions Index was owed "to a surge in concerns 
about high prices both for personal finances as well as buying conditions for 
major purchases. Real income expectations continued a decline that began in 
March," said Surveys of Consumers Director Joanne Hsu.

   "Consumers continue to feel buffeted by cost pressures, led by soaring 
prices at the pump. Middle East developments are unlikely to meaningfully boost 
sentiment until supply disruptions have been fully resolved and energy prices 
fall," she added.

   While year-ahead inflation expectations fell by 0.2 percentage points to 
4.5%, they remained well above the 3.4% reading seen prior to the outbreak of 
the war and far higher than in 2024. Long-run inflation expectations eased 0.1 
points to 3.4%.




(c) Copyright 2026 DTN, LLC. All rights reserved.