Consumer sentiment hits record low as high gas prices drag on Americans' outlooks

US consumer sentiment fell to a record low in May, underscoring that higher pump prices and rising costs from the US-Iran war continued to weigh on Americans’ views of the economy.

The University of Michigan’s Index of Consumer Sentiment showed consumer sentiment declined to 44.8 for the month of May, marking the lowest level on record. Sentiment fell further from April’s final reading of 49.8 and was “just below the previous historical trough seen in June 2022,” Joanne Hsu, the survey's director, said in the release.

Americans are feeling worse about the economy now than they were during the COVID-19 pandemic, the financial crisis, and following the 9/11 attacks.

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Hsu said lower-income consumers and those without college degrees “posted particularly strong sentiment declines,” given that “these groups are more sensitive to increases in the cost of gas and other essentials.”

https://finance.yahoo.com/economy/article/consumer-sentiment-hits-record-low-as-high-gas-prices-drag-on-americans-outlooks-143903199.html