Bloomberg: US consumer confidence falls to record low amid inflation

Consumer sentiment in the United States has dropped to a new record low as Americans express growing concern over inflation, rising living costs, and deteriorating buying conditions, according to a preliminary survey.

The University of Michigan’s preliminary May sentiment index fell to 48.2 from 49.8 in April, reflecting worsening economic perceptions during the survey period from April 21 to May 4, Bloomberg reported.

Respondents said they expect prices to rise by 4.5%, with many citing a sharp increase in gasoline prices as a key factor driving financial pressure. According to the American Automobile Association, average fuel prices this week exceeded $4.50 per gallon for the first time since July 2022, with costs reportedly rising by more than 50% since the start of the war with Iran.

The survey also found that Americans’ assessment of their current personal finances has fallen to its lowest level since 2009, while conditions for making major purchases dropped to a five-month low.

Economists say the decline reflects heightened uncertainty over inflation trends and household purchasing power, as consumers adjust to persistent price pressures across essential goods and energy markets.

By Sabina Mammadli