Consumer sentiment falls to fresh record low in May as surging gas prices hit outlook

A sign displays fuel prices at a Shell gas station in downtown San Diego, California, US, on Monday, May 4, 2026. Ariana Drehsler | Bloomberg | Surging gas prices due to the Iran war sent consumer sentiment to a new low in the early part of May, according to a University of Michigan survey Friday. The school's closely watched Survey of Consumers posted a 48.2 preliminary reading, down 3.2% from April's prior record swoon and off 7.7% from a year ago. Economists surveyed by Dow Jones had been looking for 49.7. Inflation fears were the primary driver of the continued trend lower in consumer attitudes. The trend, which also saw the current conditions index tumble 9%, is "owing to a surge in concerns about high prices both for personal finances as well as buying conditions for major purchases," survey director Joanne Hsu said. One-third of respondents mentioned gas prices as the biggest cause of concern. However, another one-third also cited tariffs — both connected to President Donald Trump, who launched an attack on Iran in late-February and announced an aggressive slate of tariffs in April 2025. "Taken together, consumers continue to feel buffeted by cost pressures, led by soaring prices at the pump," Hsu said. "Middle East developments are unlikely to meaningfully boost sentiment until supply disruptions have been fully resolved and energy prices fall." There were a couple modest bright sides in the survey. …