U.S. consumer confidence crashes to record low as prices soar
American consumer confidence has hit a historic low, with rising prices squeezing household budgets. The University of Michigan’s latest survey reveals deep frustration as everyday costs climb sharply across the country.
The Consumer Sentiment Index plunged to 44.8 in May, marking its lowest point since records began. Over half of those surveyed—57%—reported that soaring prices were eating into their personal finances. Basic necessities, from groceries to fuel, have become significantly more expensive, leaving many struggling to keep up.
Petrol prices have surged by more than 50% this year, reaching a national average of $4.552 per gallon. The spike follows geopolitical tensions, including the conflict in Iran, which has pushed fuel costs even higher. At the same time, overall inflation hit a three-year peak in April, worsening affordability concerns. Consumers now expect inflation to rise further. Short-term forecasts for the next 12 months jumped to 4.8%, while long-term predictions over five years climbed to 3.9%. Sentiment has fallen most sharply among Republicans and Independents, dropping to the lowest levels seen during Trump’s second term.
The sharp decline in confidence reflects widespread financial strain as households face higher living costs. With inflation expectations rising and fuel prices remaining elevated, economic pressures are unlikely to ease soon for many Americans.
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