American consumer sentiment fell to a record low in May as high gas prices, inflation concerns and the ongoing Iran conflict continued to weigh heavily on household finances, according to a new University of Michigan survey reported by CNN.
The consumer sentiment index dropped to 44.2, marking the third straight monthly decline and falling below the previous record low set in April.
Survey director Joanne Hsu said rising living costs remain the biggest concern for Americans, with more than half of respondents saying inflation is damaging their personal finances.
Consumer sentiment sinks to all-time low, with Americans feeling worse now than they did during wars, 9/11, the Great Recession and Covid-19 pandemic. https://t.co/roTjzacIK4 pic.twitter.com/gbjqqKG1ie
— CNN (@CNN) May 22, 2026
The report said higher fuel prices linked to disruptions in the Strait of Hormuz have intensified fears that inflation will remain elevated for months. Consumers also expect broader price increases across goods and services.
Lower-income Americans and those without college degrees reportedly showed some of the sharpest declines in confidence.
Despite strong stock market performance and broader economic resilience, economists noted many Americans continue struggling with affordability pressures and stagnant purchasing power.
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TIPP Staff
TIPP Staff
