Consumer sentiment falls to record low as gas prices, inflation worries rise

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Consumer sentiment falls to record low as gas prices, inflation worries rise
 
Published Wednesday, May 27, 2026 11:00 am
by Marianne Wilson

This is a summary

"Consumer sentiment fell for the third straight month in May as supply disruptions in the Strait of Hormuz continued to lift gasoline prices.

Sentiment is now just below the previous historical low seen in June 2022, according to the University of Michigan Surveys of Consumers, whose Index of Consumer Sentiment fell 10% in May to 44.8 in May. 

In addition, consumers anticipate that business conditions will worsen over both short and long time horizons. The Current Conditions Index fell 12.8% to 45.8, and is down 22% year over year. The Index of Consumer Expectations declined 8.3% to 44.1. Consumers cited a variety of pressures on businesses, including recent factors like rising costs and the Iran conflict, as well as ongoing factors like tariffs and uncertainty,

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. Independents and Republicans saw decreases in sentiment, with both groups reaching their lowest readings of the current presidential administration. Sentiment of Democrats was little changed from last month."

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Consumer sentiment falls to record low as gas prices, inflation worries rise | Chain Store Age

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Consumer sentiment falls to record low as gas prices, inflation worries rise | Chain Store Age

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