High gas prices, cost of living send US consumer sentiment to all-time low
CNN • • business
Key Points:
- The University of Michigan's consumer sentiment index fell to a record low of 44.2 in May, marking the third consecutive monthly decline and surpassing the previous low of 49.8 set in April.
- High inflation, an affordability crisis, and the US-Israeli war in Iran causing oil supply disruptions and price shocks have severely worsened consumer sentiment, with 57% of consumers citing high prices as a major financial concern.
- Lower-income consumers and those without college degrees have experienced the sharpest declines in sentiment, as rising costs for fuel and essentials hit these groups hardest.
- Inflation expectations have risen, with consumers anticipating a 4.8% increase over the next year and 3.9% over five years, driven in part by ongoing geopolitical tensions and supply chain worries.
- Despite strong stock market performance and signs of economic resilience, many Americans feel financially strained, with limited access to retirement funds and diminishing effects from temporary income boosts.