Politics | consumer sentiment Consumer Sentiment Near an All-Time Low New index defies predictions that sentiment would rise in May By John Johnson withNewser.AI Posted May 16, 2025 11:41 AM CDT Copied Shoppers consider a large-screen television with the help of a sales associate in a Costco warehouse Thursday, May 1, 2025, in Sheridan, Colo. (AP Photo/David Zalubowski) See 1 more photo Americans appear to be growing more anxious about the economy, with consumer sentiment dropping for the fifth straight month to reach a three-year low. Details: A closely watched index out of the University of Michigan fell to 50.8 in May, down roughly 3% from April's 52.2. It's part of a nearly 30% decline since January, reports the AP. The figure is also the second-lowest ever recorded, behind only the 50.0 logged in June 2022, notes the Wall Street Journal. What's more, the consensus among economists was that sentiment would rise this month. Tariffs were mentioned by about 75% of respondents to the UM survey, conducted April 22 to May 13. That covers only two days after the US and China de-escalated their tariff fight. Final figures released at the end of the month will provide a sense of whether people are feeling better about tariffs' effect on the economy. (Despite the easing of the trade war, tariffs are still in play, with Walmart the latest chain to warn that higher prices are imminent as a result.) Inflation expectations are also on the rise, notes CNBC. The survey found consumers now expect prices to climb 7.3% over the coming year—up from 6.5% last month and the highest reading since 1981. Five-year inflation expectations also rose to 4.6%. These figures exceed the actual inflation rate, which ticked down to 2.3% last month. Economists and the Federal Reserve pay close attention to these expectations, as heightened worries can prompt behaviors—like demands for higher wages—that may actually push prices up, per the AP. Read These Next Her blood isn't compatible with anyone else's. Iran's supreme leader makes first public comments since ceasefire. New Fox star, 23, misses first day after car troubles. Rubio says the fate of Iran's conversion facility is what matters. See 1 more photo Report an error