Americans haven’t felt this gloomy about the economy since Eisenhower was in office. Actually, they haven’t felt this gloomy ever.
The University of Michigan’s Index of Consumer Sentiment dropped to 44.8 in May 2026, marking the lowest reading in the survey’s history dating back to 1952. That’s a 10% decline from April’s already grim revised reading of 49.8, extending a downward spiral that has accelerated since the Iran conflict escalated earlier this year.
The culprit isn’t hard to find. One-third of survey respondents pointed directly at gasoline prices as a top concern shaping their economic outlook. With the Strait of Hormuz, the narrow waterway through which a massive share of global oil supply flows, disrupted by the ongoing conflict, energy costs have become the single biggest weight dragging consumer confidence into historic territory.
The numbers behind the despair
To appreciate how bad 44.8 really is, you need some context. The index sat at 49.8 in April’s final reading, which itself was revised up from a preliminary estimate of 47.6. Even that “improved” April number was already deeply pessimistic. The May figure blew right past it.
