U.S. Consumer Sentiment Falls to Record Low as Cost Pressures Mount

Americans grew more pessimistic about the economy in May as rising gasoline prices and inflation continued to strain household finances, according to Yahoo Finance.

Lower-income households and people without college degrees experienced especially sharp declines in confidence.

The University of Michigan’s Index of Consumer Sentiment fell to 44.8, marking a record low and slipping below its 2022 trough.

“The cost of living continues to be a first-order concern,” survey director Joanne Hsu said, noting that 57% of respondents spontaneously mentioned rising prices as a factor hurting their personal finances.

Lower-income households and people without college degrees experienced especially sharp declines in confidence, reflecting greater sensitivity to increases in gasoline and essential goods prices.

One-year inflation expectations edged up to 4.8% from 4.7% in April, while long-term inflation expectations rose to 3.9% from 3.5%.