Americans haven’t been this pessimistic about the economy since the University of Michigan started asking them. The final May 2026 reading of the Consumer Sentiment Index came in at 44.8, down from 49.8 in April and even worse than the preliminary May estimate of 48.2.
To put that in perspective, this reading is lower than anything recorded during the Great Recession or the peak of pandemic-era inflation.
What’s driving the collapse in confidence
Persistent inflation pressures, rising gasoline prices tied to geopolitical tensions around the Iran conflict and disruptions in the Strait of Hormuz, and ongoing tariff concerns have created a trifecta of economic anxiety that’s grinding down household optimism.
A full 57% of survey respondents said high prices are meaningfully hurting their financial situations.
