WASHINGTON (dpa-AFX) - A report released by the University of Michigan on Friday showed consumer sentiment in the U.S. deteriorated by much more than previously estimated in the month of May.
The University of Michigan said its consumer sentiment index for May was downwardly revised to 44.8 from a preliminary reading of 48.2. Economists had expected the index to be unrevised.
With the unexpected downward revision, the consumer sentiment index is down sharply from 49.8 in April, hitting its lowest reading on records going back to 1952.
Surveys of Consumers Director Joanne Hsu noted the consumer sentiment index fell for the third straight month as supply disruptions in the Strait of Hormuz continue to boost gasoline prices.
'The cost of living continues to be a first-order concern, with 57% of consumers spontaneously mentioning that high prices were eroding their personal finances, up from 50% last month,' Hsu said.
She added, 'Critically, consumers appear worried that inflation will increase and proliferate beyond fuel prices, even in the long run.'
The report also said the current economic conditions index tumbled to 45.8 in May from 52.5 in April, while the index of consumer expectations slumped to 44.1 in May from 48.1 in April.
On the inflation front, year-ahead inflation expectations inched up to 4.8 percent in May from 4.7 percent in April, substantially exceeding the 3.4 percent reading seen in February prior to the start of the Iran conflict.
Long-run inflation expectations also jumped to 3.9 percent in May from 3.5 in April, notably higher than the 2.8 to 3.2 percent range seen in 2024.
'This month's increase in long-run expectations reflects sizable jumps among independents and Republicans,' Hsu said. 'For the latter group, long-run inflation expectations are currently more than double their February 2025 reading on a monthly basis.'
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
