Overview
- The University of Michigan’s final May Consumer Sentiment Index fell to 44.8, a survey low, in data released Friday, May 22, 2026, after a downward revision from the preliminary May print.
- The preliminary May reading of 48.2 was revised down to 44.8 and the Expectations component fell to 44.1 while the Current Economic Conditions index dropped to 45.8, showing sentiment worsened through the month.
- Survey director Joanne Hsu and respondents pointed to higher gasoline prices tied to supply disruptions in the Strait of Hormuz plus tariffs and other cost pressures as the main drivers, with 57 percent saying high prices are eroding their finances.
- Consumers’ year-ahead inflation expectations rose to roughly 4.8 percent and longer-run expectations moved toward about 3.9 percent, a shift that could complicate Federal Reserve policy if it becomes entrenched.
- Because consumer spending makes up about two-thirds of U.S. GDP, sustained weakness in confidence risks slower growth and pressure on discretionary sectors such as retail, travel, and dining, so markets will watch June sentiment, fuel costs, and Fed guidance closely.