US consumer sentiment weakened slightly in May, remaining near the depressed levels last seen during the 2022 inflation shock as households continued expressing concern about high prices and deteriorating buying conditions.
The University of Michigan Consumer Sentiment index fell from 49.8 to 48.2, while the Current Economic Conditions index dropped sharply from 52.5 to 47.8.
The decline in current conditions reflected rising concern over personal finances and affordability, particularly for major household purchases. Survey respondents continued citing elevated prices as a key pressure point, even though headline inflation expectations eased modestly during the month.
One-year inflation expectations slipped from 4.7% to 4.5%, while long-run inflation expectations edged lower from 3.5% to 3.4%. Still, inflation expectations remain well above pre-Iran war levels and continue exceeding the ranges seen before the pandemic.
The data suggest consumers are becoming somewhat less pessimistic about the future, with the Expectations index ticking up slightly from 48.1 to 48.5, but confidence overall remains fragile as households continue adjusting to higher prices and geopolitical uncertainty.
| Indicator | Previous | Latest |
|---|---|---|
| Consumer Sentiment | 49.8 | 48.2 |
| Current Conditions | 52.5 | 47.8 |
| Expectations Index | 48.1 | 48.5 |
| 1-Year Inflation Expectations | 4.7% | 4.5% |
| Long-Run Inflation Expectations | 3.5% | 3.4% |
