US consumer sentiment deteriorated again in early May, with University of Michigan’s index falling from 52.2 to 50.8, its lowest level since mid-2022 and well below expectations of 53.0.
The decline was broad-based, with Current Economic Conditions Index slipping from 59.8 to 57.6 and Expectations Index easing from 47.3 to 46.5. Since the start of 2025, overall sentiment has plunged nearly 30%.
The report also highlighted a surge in inflation fears, with year-ahead inflation expectations jumping from 6.5% to 7.3%.
According to the survey, nearly three-quarters of respondents spontaneously mentioned tariffs, a notable increase from April’s 60%.
Interviews for the survey were conducted between April 22 and May 13, capturing only limited responses after the May 12 announcement of a partial tariff pause on Chinese goods. The final May release may reveal whether that move tempers consumer concerns.
