Americans haven’t felt this pessimistic about the economy since Eisenhower was in the White House. And technically, they feel worse now than they did back then.
The University of Michigan’s Consumer Sentiment Index dropped to a final reading of 44.8 in May, down from an already grim preliminary figure of 48.2 and April’s 49.8. That makes it the lowest level ever recorded since the survey launched in the 1950s, which is saying something given the recessions, oil crises, and financial meltdowns that have happened in the decades since.
What’s driving the collapse in confidence
Roughly one-third of survey respondents pointed to high gasoline costs as a primary concern, with prices reportedly surpassing $4.50 per gallon. Those elevated fuel costs are tied to geopolitical tensions with Iran and supply disruptions in the Strait of Hormuz, a chokepoint that handles a significant share of global oil traffic.
Nearly 30% of respondents also flagged tariffs as a source of anxiety.
