US EditionConsumer sentiment falls in May as Americans’ inflation expectations jump after tariffs
- In May 2025, Americans’ confidence in the economy declined for the fifth consecutive month, with the University of Michigan’s consumer sentiment index dropping 2.7% to 50.8, one of the lowest readings in the survey’s history.
- This drop followed concerns over tariffs imposed earlier by the Trump administration and ongoing trade tensions, despite a recent tariff reduction deal with China announced on May 12.
- Consumers expect inflation to surge to 7.3% over the next year, the highest since 1981, while five-year inflation expectations rose to 4.6%, the highest since 1991.
- Federal Reserve Chair Jerome Powell called these inflation expectations an outlier but noted that wage demands driven by inflation worries could push prices higher.
- The sentiment decline and elevated inflation fears suggest consumers remain uneasy about economic prospects, and tariffs continue to raise concerns over slower growth and higher prices.
129 Articles
129 Articles
US consumer mood darkens as households prepare for price hikes
US consumer sentiment deteriorated further in May, with one-year inflation expectations soaring to levels last seen in late 1981 amid escalating fears over the economic impact of US president Donald Trump’s trade policy.
The report of the University of Michigan Consumer Feeling Index highlights that confidence has fallen by 30% since January.
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diarioestrategia.clMadrid. 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…
By Alicia Wallace, CNN Americans' perceptions of the economy remain stagnant following President Donald Trump's tariffs, with consumer confidence continuing its freefall this month, hitting a near-record low. The University of Michigan's consumer confidence index fell 2.7% to a preliminary 50.8 in May, even lower than April's 52.2. May's preliminary index, the second-lowest on record, was slightly above the record low of 50 points hit in June 20…
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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