US Consumer Sentiment Hits Record Low as Inflation Fears Mount

The University of Michigan's consumer sentiment index fell to 44.8 in May 2026, its lowest level since the survey began in 1952. The decline was driven by deepening inflation fears, with gas prices approaching historic highs. The reading marks a sharp drop from previous months, reflecting growing pessimism about the economy. The survey, which measures consumer confidence, is closely watched as a leading indicator of spending and economic health. The May figure underscores the impact of rising costs on household outlooks, with consumers expressing heightened concern over their personal finances and business conditions. The index has now fallen for several consecutive months, erasing gains made during the post-pandemic recovery.