Americans haven’t felt this grim about the economy since Harry Truman was in the White House. The University of Michigan’s Index of Consumer Sentiment fell to 44.8 in its final May 2026 reading, the lowest level since the survey launched in November 1952.

That’s a 10% drop from April’s already weak 49.8, and it came in well below the preliminary May estimate of 48.2.

The numbers paint a bleak picture

Both components of the index deteriorated sharply. The Current Economic Conditions gauge dropped to 45.8, a 12.8% decline month-over-month. The Index of Consumer Expectations fell 8.3% to 44.1.

Survey director Joanne Hsu reported that 57% of respondents said high prices were negatively impacting their personal finances. That’s up from 50% in April.

The steepest declines in sentiment were concentrated among lower-income households and respondents without college degrees. Surging gas prices, tied to ongoing supply disruptions in the Strait of Hormuz, are a major driver.

Inflation expectations are climbing

Year-ahead expectations rose to 4.8%, while long-run expectations hit 3.9%. The Federal Reserve’s target inflation rate is 2%.

Independents and Republicans reported record lows in confidence regarding the current presidential administration, while views among Democrats remained stable.

Bitcoin keeps doing its own thing

Despite consumer sentiment hitting generational lows, Bitcoin has continued to rally alongside the Nasdaq and broader equity markets.

Consumer spending accounts for roughly two-thirds of US GDP. If sentiment this dire eventually translates into an actual pullback in spending, it will hit corporate revenue.