U.S. consumer sentiment fell to a record low in early May as Americans grew more concerned about inflation, rising gasoline prices and the impact on household finances. The University of Michigan’s preliminary sentiment index dropped to 48.2 from 49.8, while consumers expected inflation of 4.5% over the next year. Gasoline prices rose above $4.50 a gallon for the first time since 2022 amid the Iran war. Survey director Joanne Hsu said consumers continued to feel pressured by higher living costs,

U.S. consumer sentiment fell to a record low in early May as Americans grew more concerned about inflation, rising gasoline prices and the impact on household finances. The University of Michigan’s preliminary sentiment index dropped to 48.2 from 49.8, while consumers expected inflation of 4.5% over the next year. Gasoline prices rose above $4.50 a gallon for the first time since 2022 amid the Iran war. Survey director Joanne Hsu said consumers continued to feel pressured by higher living costs, particularly fuel prices and tariffs.