Consumer sentiment declined for the third consecutive month in May to 44.8 from 49.8 in April, a 10.0% fall month-over-month, according to the University of Michigan’s Surveys of Consumers report. Year-over-year consumer sentiment fell 14.2%.
“Consumer sentiment fell for the third straight month as supply disruptions in the Strait of Hormuz continue to boost gasoline prices,” Surveys of Consumers Director Joanne Hsu said. “Sentiment is now just below the previous historical trough seen in June 2022. The cost of living continues to be a first-order concern, with 57% of consumers spontaneously mentioning that high prices were eroding their personal finances, up from 50% last month.”
“Critically, consumers appear worried that inflation will increase and proliferate beyond fuel prices, even in the long run,” Hsu added.
Read the full report here.
