University of Michigan says U.S. consumer sentiment fell to a record low in May
The Facts
- The University of Michigan’s consumer sentiment index fell to 44.8 in May, the lowest reading on record for the survey.
- The May final reading was down from the preliminary May figure of 48.2 and from April’s final reading of 49.8.
- Consumer sentiment declined for the third consecutive month in May.
- Reports across outlets linked the decline in sentiment to higher gasoline prices and broader cost-of-living pressures.
- The survey said 57% of consumers mentioned that high prices were eroding their personal finances, up from 50% the previous month.
- Lower-income consumers and people without college degrees saw especially large declines in sentiment, according to the survey coverage.
- Measures of both current economic conditions and consumer expectations also fell in May, indicating weaker views of both present conditions and the near-term outlook.
- Inflation expectations increased in the May survey, suggesting consumers are worried that price pressures could continue beyond fuel costs.
How left and right are reading this
- Both agree
- Record-low sentiment reflects more than a mood swing: higher gasoline prices, broader cost-of-living pressure, and rising inflation expectations are eroding household finances, with the heaviest damage falling on lower-income consumers and others with the least cushion.
- They split on
- Less a disagreement than a question of emphasis: the unequal burden on lower-income and non-college households versus the broader warning from a three-month slide in views of both current conditions and the near-term outlook.
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Context
What exactly did the survey show?
The University of Michigan’s final May consumer sentiment index came in at 44.8, down from 48.2 in the preliminary May reading and 49.8 in April, making it the lowest reading recorded by the survey Barrons,Yahoo! Finance,WSJ.
What reasons did the reports give for the decline in sentiment?
The main factors cited were rising gasoline prices, cost-of-living strain, and concern about inflation. The survey director said 57% of consumers reported that high prices were hurting their personal finances Independent,U.S. News & World R…,english.news.cn.
Why does this matter beyond one monthly survey?
The drop suggests households are feeling worse about both current conditions and the months ahead, while inflation expectations are also moving higher. That combination can shape spending behavior and signals continued pressure on families already facing higher everyday costs Bloomberg Business,Axios,Investing.com India.
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Wire services (2)
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