An article summarized by Quartz:

Consumer sentiment in the U.S. plunged to a record low in May, according to the University of Michigan’s closely watched survey, as Americans grew increasingly worried about rising gas prices and long-term inflation. The index fell to 44.8, down sharply from 49.8 in April, marking the weakest reading in the survey’s history dating back to 1952. Economists say the decline was fueled largely by disruptions in the Strait of Hormuz tied to the Iran conflict, which sent gasoline prices soaring above $4.50 a gallon nationwide.

Americans are becoming more pessimistic not just about fuel costs, but about the broader economy. Nearly 60% of consumers surveyed said inflation was hurting their personal finances, while expectations for future inflation also climbed. One-year inflation expectations rose to 4.8%, while long-term expectations jumped to 3.9%, their highest level in months. Lower-income households and people without college degrees reported some of the steepest declines in confidence, showing how heavily rising everyday costs are weighing on working Americans.

The report also highlighted a growing political divide in economic outlooks, with independents and Republicans reporting some of the sharpest drops in confidence since the current administration took office. The May reading marked the third straight monthly decline and now sits below previous lows recorded during the Great Recession, the Covid-19 pandemic, and even the oil shocks of the 1970s. Economists warn that if consumers continue expecting higher inflation in the years ahead, it could create a dangerous cycle where workers demand higher wages and businesses raise prices further, complicating the Federal Reserve’s fight against inflation.

For the article: https://qz.com/us-consumer-sentiment-all-time-low-may-2026-052226