The University of Michigan’s Consumer Sentiment Index fell to an all-time record low of 44.8 in May 2026. This final reading dropped from 49.8 in April and missed all economist projections. The figure also came in significantly lower than the preliminary estimate of 48.2.
Surging gasoline prices stemming from supply disruptions in the Strait of Hormuz drove the decline. High prices eroded personal finances for 57% of surveyed consumers. Long-term inflation expectations climbed to a seven-month high, reaching 3.9%.
This historic drop presents a severe headwind for the consumer discretionary sector. The data signals potentially weaker future spending on non-essential goods.