Economic Pessimism Hits Another All-Time High Thanks To Soaring Gas Prices
Views on the U.S. economy dropped again in May to another record low, according to a widely tracked survey by the University of Michigan, which warned that further ceasefire talks with Iran are unlikely to boost optimism unless surging gas prices cool. Getty Images Key Facts The University of Michigan‘s consumer sentiment reading, a monthly survey of Americans’ views on the economy, dropped to 48.2 in May from a previous record low of 49.8 in April. Values below the surveys historical benchmark of 100 correspond with growing pessimism among Americans, and any reading above—which last occurred in 2018—suggests broader optimism. Survey interviews were completed between April 21 and May 4. Why Are Americans Pessimistic About The Economy？ About one-third of respondents mentioned gas prices and 30% mentioned President Donald Trump‘s tariffs, survey director Joanne Hsu said in a statement. “Consumers continue to feel buffeted by cost pressures, led by soaring prices at the pump,” Hsu said, adding, “Middle East developments are unlikely to boost sentiment until supply disruptions have been fully resolved and energy prices fall.” Americans’ views of their current financial situation fell to their lowest level since 2009, while the surveys expectations index—how optimistic consumers are about the economy and their finances over the next