Consumer sentiment fell to a record low in early May, according to the University of Michigan. High gas prices continued to weigh on Americans’ outlook.
The survey recorded the lowest confidence among Republican consumers since President Donald Trump’s 2024 election win. Sentiment across the broader population also dropped sharply.
Gas prices remained elevated across the country, pressuring household budgets. Many consumers cited fuel costs as a primary reason for their growing pessimism.
The index of consumer sentiment declined to its lowest level on record. This marked a significant reversal from previous months.
Economists noted that sustained high inflation has eroded purchasing power. Consumers are now more cautious about spending.
The data suggests households expect economic conditions to worsen in the near term. Spending behavior may shift as a result.
Analysts will watch for further drops in sentiment as gas prices stay high. The next reading could offer more clarity on consumer resilience.
