Consumer Sentiment Hits Record Low at 48.2 in May Survey

AI Summary

The University of Michigan's Survey of Consumers revealed a preliminary consumer sentiment reading of 48.2 in May, down 3.2% from April and 7.7% year-over-year. Economists expected a higher reading of 49.7. Concerns were primarily driven by surging gas prices, which averaged $4.54 per gallon, increasing nearly 40 cents from the previous month. Despite these declines, the expectations index rose slightly to 48.5, and inflation projections eased modestly, indicating ongoing concerns about economic conditions but with slight optimism for future expectations.