Consumer confidence in the US just hit a number nobody wanted to see. The University of Michigan’s Consumer Sentiment Index dropped to 44.8 in its final May 2026 reading, the lowest figure ever recorded in the survey’s history.
That’s not a typo. And it’s not even close to the preliminary estimate of 48.2 that already had economists concerned. The final number fell another 3.4 points below that first read, extending a slide that started in March and has now stretched across three consecutive months of decline.
The numbers behind the collapse
To understand how bad 44.8 really is, consider the trajectory. April’s final reading was 49.8, which itself was already historically grim. In one month, the index shed another five full points.
The primary culprit is inflation, specifically the war-driven variety. The escalated US-Iran conflict has disrupted oil flows through the Strait of Hormuz, sending gasoline prices higher and rattling household budgets across the country. When the survey asked consumers what’s eating their wallets, 57% pointed directly at high prices as their main source of financial stress.
