University of Michigan’s early May consumer sentiment index falls to 48.2, a record low

Friday, May 8, 2026Business & MarketsWell-covered3 frames

The University of Michigan’s preliminary consumer sentiment index fell to 48.2 in early May, down from 49.8 in April.
Multiple outlets described the 48.2 reading as a record low for the survey, with records going back to 1952.
Reports on the survey said higher gasoline prices were a main factor weighing on consumer sentiment and household purchasing power.
Joanne Hsu said about one-third of consumers mentioned gasoline prices and about 30% mentioned tariffs when describing their concerns.
The survey’s current conditions component fell about 9% to 47.8, while the expectations index edged up to 48.5.
The report matters for consumers because it reflected increased concern about personal finances and buying conditions for major purchases, not just a lower headline sentiment reading.
Inflation expectations in the survey eased slightly, with year-ahead expectations at 4.5% versus 4.7% previously and long-run expectations at 3.4% versus 3.5%.
One unresolved question after the release is whether easing inflation expectations will improve sentiment, since Hsu said Middle East developments are unlikely to lift sentiment meaningfully until supply disruptions are resolved and energy prices fall.

How left and right are reading this

Both agree: Higher gasoline prices are materially squeezing household purchasing power and confidence, showing up not just in a record-low sentiment reading but in worse views of personal finances, current conditions, and buying conditions for major purchases.
They split on: Less a disagreement than a question of emphasis: whether the survey chiefly signals household strain from everyday costs, including tariffs and weaker purchasing power, or a more direct energy-price and supply-disruption story that will not improve until those pressures ease.

The University of Michigan’s preliminary consumer sentiment index fell to 48.2 in early May, down from 49.8 in April.
Multiple outlets described the 48.2 reading as a record low for the survey, with records going back to 1952.
Reports on the survey said higher gasoline prices were a main factor weighing on consumer sentiment and household purchasing power.
Joanne Hsu said about one-third of consumers mentioned gasoline prices and about 30% mentioned tariffs when describing their concerns.
The survey’s current conditions component fell about 9% to 47.8, while the expectations index edged up to 48.5.
The report matters for consumers because it reflected increased concern about personal finances and buying conditions for major purchases, not just a lower headline sentiment reading.
Inflation expectations in the survey eased slightly, with year-ahead expectations at 4.5% versus 4.7% previously and long-run expectations at 3.4% versus 3.5%.
One unresolved question after the release is whether easing inflation expectations will improve sentiment, since Hsu said Middle East developments are unlikely to lift sentiment meaningfully until supply disruptions are resolved and energy prices fall.