By Jamie Martin
Preliminary data from the University of Michigan reveals that consumer sentiment declined again in May, reflecting growing economic concerns among Americans due to ongoing tariffs.
The consumer sentiment index dropped to 50.8 from 52.2 in April, highlighting increasing worries about rising prices and uncertainty about the economic outlook.
The report notes that nearly three-quarters of consumers spontaneously mentioned current tariffs as a major concern, up from about 60% the previous month. Trade policy uncertainty remains a dominant factor influencing how people view the economy.
Key highlights from the data include a 2.7% decrease in overall consumer sentiment from April to May, inflation expectations climbing to 7.3% compared to 6.5% last month, and personal financial assessments falling by nearly 10%, driven largely by weakening incomes.
This decline in confidence follows recent inflation reports and growing unease from business leaders about the broader economic impact of tariffs. The persistent instability caused by widespread tariffs and shifting trade policies is contributing to ongoing uncertainty.
Despite recent announcements from the administration, a minimum 10% tariff remains in place across many goods. As inflation pressures increase, disruptions accumulate, and trade tensions continue, consumer confidence is expected to face further challenges in the near future.
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Categories: National