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

Features

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."

Read the original on Chain Store Age

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

Image credit to Dawn McDonald on Unsplash


Send this page to a friend

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

Recent News

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

The University of Michigan Index of Consumer Sentiment fell 10% in May 2026 to 44.8, marking the third consecutive monthly decline and dropping just below the previous historical low seen in June 2022, as supply disruptions in the Strait of Hormuz continued to lift gasoline prices. The Current Conditions Index plunged 12.8% to 45.8 and is down 22% year-over-year, while the Index of Consumer Expectations declined 8.3% to 44.1, with consumers anticipating business conditions will worsen over both short and long time horizons. Nearly 40% of consumers offered unsolicited comments about gas prices during interviews, up from 33% the previous month, with lower-income consumers and those without college degrees posting particularly strong declines as these groups are more sensitive to increases in gas costs, which have risen sharply by more than 50% since the start of the Iran conflict. Consumers expect prices to rise 4.8% over the next year, up from 4.7% in April, with longer-term inflation expectations also climbing sharply, raising concerns that inflation will spread beyond fuel prices even in the long run

Retail sales grow in April

Retail sales rose for the seventh consecutive month in April 2026 despite rising gas prices and persistent inflation, with core retail sales increasing 0.34% month-over-month and 5.53% year-over-year according to the CNBC/NRF Retail Monitor. Total retail sales, excluding automobile dealers and gasoline stations, rose 0.34% month-over-month and 5.73% year-over-year, with spending supported by a steady labor market, wage growth, and significant tax refunds. Clothing stores led all retail categories with a 9.75% year-over-year increase, followed by sporting goods stores at 8.55% and health and personal care stores at 8.42%, while building and garden supply stores were the only category to decline year-over-year, falling 2.74%. For the first four months of 2026, total sales were up 6.07% year-over-year and core sales increased 5.99%, though April's growth slowed slightly from March's gains of 0.4% month-over-month and 6.59% year-over-year.

How retail landlords are finding revenue beyond the rent roll

Retail landlords are shifting their strategy from being passive real estate owners to active operators, looking for revenue streams beyond traditional rent rolls. As retail properties are increasingly viewed as "community infrastructure," landlords are monetizing foot traffic, physical space, and data through five key methods