May’s consumer sentiment index fell for the third straight month, approaching a historic low as inflation concerns weigh on household finances.
US consumer sentiment declined to 44.8 in May, extending a three-month slide and approaching the record low set in June 2022. The drop reflects growing anxiety over persistent inflation, with 57% of respondents citing high prices as a strain on personal finances.
The latest reading follows a downward trend, with one-year inflation expectations rising to 4.8% from 4.7% in April. Long-term expectations also climbed to 3.9%, up from 3.5%, signaling heightened concerns about future price pressures.
The data underscores weakening consumer confidence amid elevated inflation, which could dampen spending and economic growth prospects.