US Consumer Sentiment Drops as Americans Expect Inflation Revival

The latest University of Michigan Consumer Sentiment Index was conducted mostly before the U.S.–China tariff pause.

People shop at a grocery store in New York City on March 12, 2025. Samira Bouaou/The Epoch Times

Consumer sentiment deteriorated further in May as Americans anticipate that tariffs will trigger inflation pressures, according to data released by the University of Michigan on May 16.

The university’s preliminary Consumer Sentiment Index declined for the fifth consecutive month, falling sharply to 50.8 in May from 52.2 in April. This came in below the consensus estimate of 53.4.