American families are facing the second-worst consumer sentiment on record as inflation fears skyrocket, igniting concerns about the country’s economic future.
The University of Michigan’s consumer sentiment index plummeted to 50.8 in May, approaching the all-time low set during the 2022 inflation crisis.
Meanwhile, inflation expectations have surged to alarming levels as consumers brace for the devastating impact of tariff policies on already strained household budgets.
The shocking May sentiment reading of 50.8, down from 52.2 in April, blindsided economists and revealed the true economic anxiety facing ordinary Americans.
This disastrous figure ranks as the second-lowest in recorded history, beaten only by the June 2022 reading when inflation first spiraled out of control during the Biden administration.
Even more concerning, the result was lower than all but one estimate in a Bloomberg survey of economists, showing how Washington elites continue to underestimate the economic pain felt by working Americans.
Year-ahead inflation expectations jumped dramatically from 6.5% to 7.3%, while long-term inflation expectations increased to 4.6% from 4.4%.
These figures reflect the harsh reality that prices for essentials like groceries, gas, and housing continue to climb far faster than wages under the current administration.
Furthermore, despite the current administration’s desperate attempts to ease economic concerns before the election, the devastating sentiment report comes.
Nearly three-quarters of consumers specifically mentioned tariffs as a major concern affecting current economic conditions.
The survey was largely completed before the U.S. and China announced a 90-day pause on most tariffs.
The Federal Reserve now finds itself in an impossible position, forced to monitor inflation expectations that have spiraled out of control due to years of printing money to fund Biden’s radical agenda.
Despite the administration’s desperate attempt to pause some tariffs, the effective tariff rate remains significantly higher than before President Trump’s first term.
A final consumer sentiment reading for May will be released on May 30, potentially reflecting changes due to the tariff pause announcement.
However, American families know the truth – temporary election-year policy changes cannot undo the damage of years of reckless spending and anti-business policies.
The second-lowest consumer sentiment on record speaks volumes about the real state of the economy that hardworking Americans experience every day at the grocery store, gas pump, and when paying their bills.
