Consumer sentiment falls to fresh record low in May as surging gas prices hit outlook
The preliminary index fell to 48.2, below economists’ expectations, as one-third of respondents cited gasoline prices and another 30% pointed to tariffs.
- On Friday, the University of Michigan Consumer Sentiment Index fell to a preliminary reading of 48.2 in May, marking a 3.2% drop from April and missing the 49.7 forecast.
- Surging gas prices driven by the ongoing war in Iran and closure of the Strait of Hormuz keep energy prices elevated, with national gas averaging $4.54, up nearly 40 cents from last month.
- Survey director Joanne Hsu reported that about one-third of consumers cited gas prices and about 30% mentioned tariffs, driven by "a surge in concerns about high prices both for personal finances as well as buying conditions for major purchases."
- The Bureau of Labor Statistics reported 115,000 jobs added in April with unemployment holding at 4.3%, yet soaring energy costs remain a persistent drag on consumer economic perceptions.
- Despite the sour mood, record-low sentiment likely will not trigger weaker consumer spending, as Americans continued purchasing during 2022 inflation highs and President Donald Trump's sweeping tariffs last year.
30 Articles
30 Articles
Gas Prices Drag US Consumer Sentiment to Record Low: Survey
Americans have a downbeat view of the U.S. economy, driven by higher gasoline prices, according to the University of Michigan’s widely watched consumer survey. The preliminary May Consumer Sentiment Index declined to a record low of 48.2, “comparable to the trough reached in June 2022,” when inflation peaked at above 9 percent, the university said on May 8. This month’s lower-than-expected reading was fueled by a 9 percent drop in current condit…
US consumer sentiment hits another all-time low
U.S. consumer sentiment has fallen to a new record low, according to the University of Michigan’s latest consumer survey released Friday. The consumer sentiment index fell to 48.2 in preliminary May data, signaling Americans’ deeply pessimistic views about their finances, prices and the broader economy. This is the lowest reading since the monthly survey began in 1952. Consumer sentiment had previously reached its lowest point last month, dipp…
Gloom deepens for consumers in early May due to high gas prices
Consumer sentiment hit a record low in May, the University of Michigan said, and showed the lowest reading among Republicans since President Donald Trump’s 2024 election. Article Attribution | Read More at Article Source The post Gloom deepens for consumers in early May due to high gas prices appeared first on RocketNews.
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