The University of Michigan’s Consumer Sentiment Index fell in May to its lowest level since it began surveying in November 1952. The index fell 10 percent since April, from 49.8 to 44.8, with an annual change of -14.2 percent.

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Poor consumer sentiment was driven by heightened inflation expectations in the short and long run, as well as concerns over cost of living which was spontaneously mentioned by 57 percent of those surveyed. Independents and Republicans surveyed gave their lowest ratings of the Trump administration in the survey of consumer sentiment. 

The report comes in the wake of higher-than-target inflation in the consumer price and producer price indexes for the month of April. Year-ahead inflation expectations rose to 4.7 percent, with long-run inflation expectations rising to 3.9 percent, well above the Federal Reserve’s 2 percent target.

The previous record low came in June 2022 under the Biden administration, when the consumer price index hit a 40-year high.