FX.co ★ US Consumer Sentiment Revised to New Record Low

The University of Michigan’s Consumer Sentiment Index fell to a record low of 44.8 in May 2026, revised down from a preliminary reading of 48.2 and marking the third consecutive monthly decline. The drop came as ongoing supply disruptions in the Strait of Hormuz continued to drive gasoline prices higher. The cost of living remained the dominant concern: 57% of respondents spontaneously cited high prices as eroding their personal finances. Sentiment deteriorated most sharply among lower-income consumers and those without college degrees, who are more exposed to rising fuel and essential goods costs. Politically, sentiment among Independents and Republicans sank to the lowest levels seen under the current administration, while Democrats’ views were largely unchanged. Consumers also became increasingly concerned that inflation would extend beyond fuel over the longer term. Year-ahead inflation expectations inched up to 4.8% from 4.7%, and long-run expectations rose to 3.9% from 3.5%.