May survey shows sentiment dropped 11% to 44.2 as high prices and $1.3 trillion in credit card debt weigh on households.
US consumer sentiment plunged 11% in May to 44.2, the lowest level in the University of Michigan survey’s 75-year history. The decline reflects growing financial strain as 57% of consumers cite high prices eroding their budgets.
Gasoline prices surged from $3.20 to $4.55 per gallon since February, while credit card debt reached a record $1.3 trillion. Discretionary spending has slowed as households grapple with inflation and the prospect of higher interest rates.
The data contrasts with resilient GDP growth and rising AI stock valuations, signaling a disconnect between Wall Street and Main Street.