Preliminary University of Michigan data shows sentiment dropped to 48.2, missing estimates and signaling weaker economic confidence.
US consumer sentiment declined to 48.2 in May, below the 49.3 consensus forecast and April’s 49.8 reading. The drop reflects growing pessimism about current economic conditions, which fell to 47.8 from 52.5 in April.
Expectations for one-year inflation eased slightly to 4.5% from 4.7%, while five-year inflation expectations dipped to 3.4% from 3.5%. The consumer expectations index rose marginally to 48.5 from 48.1.
The data suggests households remain cautious amid persistent inflation and economic uncertainty, though long-term inflation views remain relatively stable.