U.S. Consumer Sentiment Hits Record Low of 48.2

U.S. consumer sentiment plunged to a record low of 48.2 in May, according to a preliminary University of Michigan survey released Friday, as high gasoline prices amid the ongoing conflict in Iran continued to erode household finances.

The index, based on interviews conducted between April 21 and May 4, fell from a revised April reading of 49.8, marking the lowest level since the survey began in 1952. It dipped below previous troughs recorded during the Great Recession and the COVID-19 pandemic. The survey's measure of current economic conditions dropped 9 points to 47.8, reflecting heightened concerns over personal finances and buying conditions for major purchases. The index of consumer expectations edged up slightly by 0.8 to 48.5.

About one-third of respondents spontaneously cited gasoline prices, while around 30 mentioned tariffs, according to Joanne Hsu, director of the University of Michigan's Surveys of Consumers. "Consumers continue to feel buffeted by cost pressures, led by soaring prices at the pump," Hsu said in an analysis. She linked the pessimism to supply disruptions from the conflict, including blockades and closures affecting the Strait of Hormuz, a vital route...