Americans haven’t felt this gloomy about the economy since Eisenhower was in office. Actually, that’s underselling it. They’ve never felt this gloomy, period.
The University of Michigan’s Index of Consumer Sentiment dropped to 44.8 in its final May reading, down from 49.8 in April. That’s the lowest number the survey has ever recorded since it started tracking the national mood in the 1950s. For context, this reading is worse than the depths of the 2008 financial crisis, worse than the early pandemic panic, worse than anything the survey has captured in roughly seven decades of data.
What’s driving the despair
The culprit isn’t mysterious. More than half of respondents, 57%, pointed to high prices as the primary force eroding their financial situations. And within that group, a full one-third singled out gasoline costs specifically.
Surging fuel prices and persistent cost pressures tied to supply disruptions from the ongoing US-Iran conflict have created a one-two punch for household budgets.
