University of Michigan Consumer Sentiment Index revised down to new record low

The University of Michigan’s Consumer Sentiment Index plunged to a record low of 44.8 in May, revised down from a preliminary 48.2 and marking the third straight monthly decline. The cost of living remained the top concern, with 57% of consumers spontaneously citing high prices as eroding their personal finances. Consumers grew increasingly worried that inflation would spread beyond fuel prices in the long term. Year-ahead inflation expectations edged up to 4.8% from 4.7%, while long-run expectations climbed to 3.9% from 3.5%.