The University of Michigan Consumer Sentiment Index fell to a preliminary reading of 48.2 in May 2026, marking a fresh record low for the survey. This figure missed economist expectations of 49.5 and represents a decline from the final April reading of 49.8.
May 2026 Preliminary Data Highlights
- Headline Index: 48.2 (down from April's 49.8).
- Current Economic Conditions: Plumped to 47.8, significantly lower than the anticipated 52.0 and April's 52.5.
- Index of Consumer Expectations: Edged up slightly to 48.5, compared to 48.1 in April.
- 1-Year Inflation Expectations: Eased to 4.5% from 4.7% in April.
- 5-10 Year Inflation Expectations: Decelerated to 3.4% from 3.5%.
Key Drivers and Insights
- Ongoing Conflict: Sentiment continues to be suppressed by the Iran conflict, which consumers primarily feel through elevated energy costs and "shocks to gasoline".
- Cost Pressures: About one-third of surveyed consumers specifically mentioned gasoline prices as a primary concern, while 30% cited the impact of tariffs.
- Divergence in Data: While current economic assessments collapsed, the slight improvement in expectations and the cooling of inflation forecasts suggest consumers are becoming more concerned about the general economic environment than just rising prices alone.
The final results for May are scheduled for release by the University of Michigan Surveys of Consumers on Friday, May 22, 2026, at 10 a.m. ET.
Would you like to compare these record-low sentiment figures to historical levels seen during the 2008 financial crisis or the 2020 pandemic?
All responses may include mistakes. For financial advice, consult a professional. Learn more
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