U.S. Consumer Sentiment Hits Lowest Level Since 1952

Consumer sentiment in the United States reached a 74-year low in May 2026, according to the University of Michigan survey. The reading fell to 49.8, below levels recorded during the 2008 financial crisis and the 1970s stagflation period. The energy component of the index increased 17.9 percent over the same period, influenced by supply disruptions linked to the U.S.-Israeli conflict in Iran.

Real wages declined for many workers as price increases outpaced nominal pay raises. Joseph Brusuelas, chief economist at RSM, stated that additional supply shocks are expected to push prices higher in May. Retail sales increased 4 percent year over year in March. Disney reported that domestic park bookings and cruise reservations remained strong through the second half of 2026.

Personal loan applications rose and credit card balances reached record levels among middle- and lower-income households. Unemployment stood at 4.3 percent with 115,000 jobs added in April. Labor's share of GDP reached its lowest level on record, according to Mohamed El-Erian, chief economic advisor at Allianz.

The divergence between asset-owning households and those reliant on wages continued to widen.