USA: Consumer Sentiment Revised to New Record Low.

The University of Michigan’s Consumer Sentiment Index plunged to a record low of 44.8 in May 2026, revised down from a preliminary 48.2 and marking the third straight monthly decline, as Strait of Hormuz supply disruptions continued to push gasoline prices higher. The cost of living remained the top concern, with 57% of consumers spontaneously citing high prices as eroding their personal finances. Lower-income consumers and those without college degrees posted the steepest declines, as these groups are more sensitive to rising gas and essentials costs. Politically, Independents and Republicans saw sentiment fall to the lowest levels of the current administration, while Democrats’ sentiment showed little change. Critically, consumers grew increasingly worried that inflation would spread beyond fuel prices in the long term. Year-ahead inflation expectations edged up to 4.8% from 4.7%, while long-run expectations climbed to 3.9% from 3.5%.