U.S. consumer sentiment falls to new low in May

Photo taken on May 8, 2026 shows the gas price at a gas station in New York, the United States. The U.S. Consumer Sentiment Index fell to 48.2 in May 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 49.8 in April 2026. (Xinhua/Zhang Fengguo)

NEW YORK, May 8 (Xinhua) -- The U.S. Consumer Sentiment Index fell to 48.2 in May 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 49.8 in April 2026.

The reading fell to a new all-time low in May as surging gas prices due to the Iran war fuel inflation worries.

The preliminary reading of the Current Economic Conditions Index fell to 47.8 in May, down from the final reading of 52.5 in April and below last May's 58.9. The Index of Consumer Expectations was 48.5, slightly up from the final reading of 48.1 in April and up from last May's 47.9.

The survey found that inflation worries were the primary driver of the continued downward trend in consumer attitudes.

"About one-third of consumers spontaneously mentioned gasoline prices and about 30 percent mentioned tariffs," said UM economist Joanne Hsu, director of the surveys. "Taken together, consumers continue to feel buffeted by cost pressures, led by soaring prices at the pump."

Though the expectations index inched up, current conditions fell back about 9 percent, owing to a surge in concerns about high prices both for personal finances and buying conditions for major purchases, said Hsu.

Year-ahead inflation expectations softened a bit from 4.7 percent in April to 4.5 percent in May, she said, adding that the reading still substantially exceeds the 3.4-percent reading seen in February prior to the start of the Iran war.

"Middle East developments are unlikely to meaningfully boost sentiment until supply disruptions have been fully resolved and energy prices fall," said Hsu.

A customer verifies a receipt at a store in New York, the United States, May 8, 2026. The U.S. Consumer Sentiment Index fell to 48.2 in May 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 49.8 in April 2026. (Xinhua/Zhang Fengguo)

Customers check price at a store in New York, the United States, May 8, 2026. The U.S. Consumer Sentiment Index fell to 48.2 in May 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 49.8 in April 2026. (Xinhua/Zhang Fengguo)

Photo taken on May 8, 2026 shows a discount shop in New York, the United States. The U.S. Consumer Sentiment Index fell to 48.2 in May 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 49.8 in April 2026. (Xinhua/Zhang Fengguo)

Customers shop at a store in New York, the United States, May 8, 2026. The U.S. Consumer Sentiment Index fell to 48.2 in May 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 49.8 in April 2026. (Xinhua/Zhang Fengguo)

Customers shop at a store in New York, the United States, May 8, 2026. The U.S. Consumer Sentiment Index fell to 48.2 in May 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 49.8 in April 2026. (Xinhua/Zhang Fengguo)

A customer checks price at a store in New York, the United States, May 8, 2026. The U.S. Consumer Sentiment Index fell to 48.2 in May 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 49.8 in April 2026. (Xinhua/Zhang Fengguo)

A worker refuels a car for a customer at a gas station in New York, the United States, May 8, 2026. The U.S. Consumer Sentiment Index fell to 48.2 in May 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 49.8 in April 2026. (Xinhua/Zhang Fengguo)

Customers shop at a store in New York, the United States, May 8, 2026. The U.S. Consumer Sentiment Index fell to 48.2 in May 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 49.8 in April 2026. (Xinhua/Zhang Fengguo)