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.