US Consumer Sentiment Close to Record Low

2025-05-16 14:05 By Joana Taborda 1 min. read

The University of Michigan consumer sentiment for the US dropped sharply to 50.8 in May 2025, down from 52.2 in April and well below market expectations of 53.4, according to preliminary estimates.

This marks the fifth consecutive monthly decline, the lowest reading since June 2022, and the second-lowest on record, as mounting inflation expectations and renewed concerns over tariffs continue to weigh on sentiment.

Both the current conditions index (57.6 vs 59.8) and expectations gauge (46.5 vs 47.3) worsened.

Current assessments of personal finances sank nearly 10% on the basis of weakening incomes.

Tariffs were spontaneously mentioned by nearly three-quarters of consumers, up from almost 60% in April; uncertainty over trade policy continues to dominate consumers’ thinking about the economy.

On the price front, inflation expectations for the year ahead surged to 7.3%, a new 1981-high from 6.5% and long-run inflation expectations edged up to 4.6% from 4.4%.



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