With the "mini war" still ongoing (albeit with a 'ceasefire' in place), expectations were for UMich consumer sentiment to continue languishing at record lows in final May data released this morning.And it did, with the headline sentiment - along with both Current Conditions and Expectations - all plunging to record lows...Source: BloombergYep... Americans have never been more miserable... Black Friday, meh; 9/11, nothingburger; GFC, fleshwound...“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,’’ Joanne Hsu, director of the survey, said in a statement.So far, consumer spending has proved resilient as the job market holds up and a stock-market rally bolsters wealth.“Critically, consumers appear worried that inflation will increase and proliferate beyond fuel prices, even in the long run,” Hsu said.Consumers expect prices to rise an annualized 3.9% over the next five to 10 years, up from 3.5% in April and the highest in seven months. They also saw costs advancing 4.8% over the next year.This month’s increase in long-run expectations reflects sizable jumps among independents and Republicans.For the latter group, long-run inflation expectations are currently more than double their February 2025 reading on a monthly basis.Republicans' confidence overall is starting to fade...Finally, here's the k-shaped economy writ large...Stocks at record highs (thanks to AI CapEx dreams) while sentiment at record lows (thanks to inflationary pressures on low income consumers - among other things)...This divergence is ultimately unsustainable.