Consumer sentiment deteriorated further in May as Americans anticipate that tariffs will trigger inflation pressures, according to data released by the University of Michigan on May 16.
The university’s preliminary Consumer Sentiment Index declined for the fifth consecutive month, falling sharply to 50.8 in May from 52.2 in April. This came in below the consensus estimate of 53.4.
This was the second-lowest reading on record and the lowest since June 2022.
In addition, the indexes for current conditions and future expectations worsened this month.
Expectations for price changes continued to worsen. The one-year inflation outlook surged to 7.3 percent from 6.5 percent last month. The five-year inflation horizon also increased to a 34-year high of 4.6 percent, from 4.4 percent in April….