The University of Michigan’s Consumer Sentiment Index landed at 44.8 in its final May reading, the lowest level ever recorded by the survey. That’s a meaningful slide from both the preliminary May figure of 48.2 and April’s final print of 49.8, marking three consecutive months of declining consumer confidence.

The preliminary number, released May 8 at 48.2, had already missed expectations of 49.5. The final revision made things worse.

Prices, gas, and tariffs are crushing morale

The Current Economic Conditions component fell to 45.8, while the Expectations component, which measures how people feel about the next six months, dropped to 44.1.

A full 57% of consumers surveyed said high prices were hurting their finances. Roughly one-third of those surveyed pointed to gasoline prices as a particular source of stress. Another 30% specifically mentioned tariffs as a factor weighing on their household budgets.

Year-ahead inflation expectations fell from 4.7% to 4.5%, and long-term expectations dropped to 3.4%. So consumers are marginally less worried about future price increases, yet they’re more miserable about current ones.

Why this matters beyond the headline number

Consumer spending accounts for roughly two-thirds of US GDP, so a sustained collapse in confidence has real implications for economic growth.

Geopolitical tensions, including issues around Iran and the Strait of Hormuz, are contributing to elevated energy prices and supply chain concerns. Those factors feed directly into the gasoline anxiety that a third of respondents flagged.

What this means for crypto investors

Earlier this year, Bitcoin showed notable resilience during similar sentiment dips, suggesting a degree of separation between digital assets and traditional macroeconomic indicators.