Consumer sentiment falls in May as Americans’ inflation expectations jump after tariffs
- The University of Michigan's consumer sentiment index fell to 50.8 in May 2025, marking the fifth consecutive monthly decline and the lowest level since June 2022.
- The decline followed concerns about the Trump administration's high import tariffs, which many Americans worry will slow growth and increase prices.
- Sentiment among Democrats reached 33.9, the lowest since 1980, while Republicans' sentiment dropped to 84.2, the lowest since Trump's election, partly amid recent tariff reductions.
- Consumers now expect inflation to rise to 7.3% in the next 12 months, the highest since 1981, up from 6.5% last month, while five-year inflation expectations hit 4.6%, the highest since 1991.
- Federal Reserve Chair Jerome Powell called the inflation expectations an outlier but noted these worries could lead to higher wages and prices, complicating monetary policy decisions.
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US Consumer Confidence Falls in May for the Fifth Consecutive Month and Touches Historic Minimum
Madrid. The consumer confidence of the United States fell in May to the second lowest level in its history and already accumulates five consecutive months of setbacks, according to the index prepared by the University of Michigan, while the inflation expectations of North American households have risen to maximums of 1981.The confidence data has been located in May at 50.8 points compared to 52.2 the previous month, which implies a monthly contr…
TeleTalk question is: Have you noticed a change in the economy either as an employee or employer?
The latest University of Michigan survey released Friday showed consumer sentiment hit its second-lowest point on record, while long-term inflation expectations ticked up to 4.6 percent from 4.4 percent. Locally, some lodging establishments are reporting reservations for the summer are…
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