U.S. Consumer Sentiment Sinks to New Record Low in May

The University of Michigan's final reading for May showed U.S. consumer sentiment sliding to 44.8, a record low. Longer-term inflation expectations moved higher, with consumers now projecting average annual price gains of 3.9% over the next five to 10 years, up from 3.5% in April and the highest level in seven months. One-year inflation expectations were 4.8%. Gasoline prices are hovering near their highest level since 2022, adding to cost-of-living pressures. Survey director Joanne Hsu said 57% of respondents reported that high prices are worsening their personal finances, up from 50% a month earlier. The survey also found growing concern that inflation could broaden and remain elevated for an extended period.