US Edition
Consumer sentiment falls in May as Americans’ inflation expectations jump after tariffs
- In May 2025, Americans’ confidence in the economy declined for the fifth month in a row, with the University of Michigan’s consumer sentiment index slipping to 50.8—its lowest mark since June 2022.
- The drop in sentiment followed rising concerns triggered by the Trump administration’s high import tariffs, which have threatened economic growth and increased prices.
- Consumers increasingly expect inflation to rise sharply, with one-year inflation expectations jumping to 7.3%, the highest since 1981, and five-year expectations reaching 4.6%, the highest since 1991.
- Federal Reserve Chair Jerome Powell called the Michigan inflation expectation numbers an outlier but noted that rising inflation worries could cause workers to demand higher wages, potentially pushing prices up further.
- The tariff-related inflation fears and low consumer sentiment suggest persistent economic uncertainty, despite a recent U.S.-China deal to reduce tariffs and some early signs of minor improvements in survey measures.
128 Articles
128 Articles
US consumer mood darkens as households prepare for price hikes
US consumer sentiment deteriorated further in May, with one-year inflation expectations soaring to levels last seen in late 1981 amid escalating fears over the economic impact of US president Donald Trump’s trade policy.
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diarioestrategia.clUS Consumer Confidence Falls in May for the Fifth Consecutive Month and Touches Historic Minimum
Madrid. The consumer confidence of the United States fell in May to the second lowest level in its history and already accumulates five consecutive months of setbacks, according to the index prepared by the University of Michigan, while the inflation expectations of North American households have risen to maximums of 1981.The confidence data has been located in May at 50.8 points compared to 52.2 the previous month, which implies a monthly contr…
TeleTalk question is: Have you noticed a change in the economy either as an employee or employer?
The latest University of Michigan survey released Friday showed consumer sentiment hit its second-lowest point on record, while long-term inflation expectations ticked up to 4.6 percent from 4.4 percent. Locally, some lodging establishments are reporting reservations for the summer are…
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