Consumer Confidence Drops Again in May as Inflation and Gas Prices Weigh on Households
U.S. consumer sentiment fell again in May, according to the University of Michigan’s latest survey. The index dropped to 44.8, down from 49.8 in April, marking the third straight monthly decline and slipping below the previous low seen in June 2022. Rising gas prices and ongoing inflation concerns continue to weigh heavily on people’s views of the economy.
Overall, sentiment is down about 10% from last month and 14% from May 2025. The measure of current economic conditions fell sharply as well, dropping from 52.5 in April to 45.8 in May. That’s nearly a 13% decline in just one month and more than 22% lower than a year ago. Expectations for the future aren’t looking much better; consumer outlook fell to 44.1 from 48.1 in April, continuing a steady downward trend.
The survey highlights that the cost of living remains front and center for most households. About 57% of respondents say high prices are putting pressure on their finances, up from 50% just a month earlier. A major factor behind this shift is the rise in gas prices.
There’s also a growing concern that inflation won’t just stick around; it could spread beyond energy costs. Short-term inflation expectations ticked up slightly to 4.8% in May, up from 4.7% in April, and remain well above levels seen earlier this year. Longer-term expectations also jumped, rising to 3.9% from 3.5%, moving beyond the typical range seen throughout 2024.
The next update from the survey, which will include early June data, is expected on Friday, June 12, 2026.
