All articles tagged with #consumer sentiment
US University of Michigan final June sentiment rose to 49.5, rebounding from a 46-year low as lower gas prices and easing inflation expectations improved both current conditions and consumer outlook.
Americans are slightly more upbeat about the economy as gas prices ease, with the University of Michigan’s sentiment index rising from 48.9 to 49.5 in the latest survey—the first uptick since February—though feelings remain well below pre-war levels as high prices linger and continue to weigh on households' finances.
New University of Michigan data show consumer sentiment rose 9% to a preliminary 48.9 this month, marking the first uptick in three months, aided by recent declines in gasoline prices; however, sentiment remains historically weak amid ongoing inflation and energy-price volatility linked to the Iran war. Economists say a real recovery will require sustained price stability, with low-income households buoyed most by cheaper gas, while a separate TransUnion survey finds inflation remains the top financial worry.
New York Fed’s May Survey of Consumer Expectations finds Americans are gloomier about their finances and job prospects, with inflation expectations around 3.5% and rising costs erasing wage gains; the labor market remains slow with modest job gains and rising perceived risk of unemployment, while quit rates edge up as people test the job market.
A New York Fed survey finds roughly 48% of Americans say their finances are worse than a year ago, the highest share since early 2023, with optimism about the next year at a low; inflation remains elevated as gas prices stay high and May CPI is expected to show around 4.2% inflation; about 15% fear losing their job within a year, wage growth (3.4% in May) lags inflation (roughly 3.8%), and credit card delinquencies have climbed to the highest level since 2011, signaling growing financial strain despite hiring gains.
A New York Fed analysis using the Survey of Consumer Expectations finds rising food insecurity since 2020—disproportionately among lower‑income, less‑educated households and those with children—alongside a sharp drop in consumer optimism and job-finding prospects. Despite solid macro indicators, sentiment remains weak, reflecting a K‑shaped economy where the bottom half faces renewed financial strain. The study links higher insecurity to deteriorating outlooks, while acknowledging that inflation, cost of living, and policy changes (e.g., SNAP) also drive pessimism and that multiple factors influence consumer expectations even among those not reporting food insecurity.
A Federal Reserve Bank of New York study updates a 2020 analysis with fresh data from its Survey of Consumer Expectations, finding a “remarkable” rise in food insecurity in early 2026—especially among lower-income households and families with young children—where 10% report not having enough food in February, up from 4% in 2020. Increases in food donations and SNAP participation, plus more households dipping into savings, accompany a shift in sentiment as Americans face higher costs and waning pandemic-era aid, highlighting persistent inequality in a K-shaped economy. The report notes the data predated the Middle East oil shock and does not claim a causal link between insecurity and consumer sentiment.
The Dow Jones hit a record high even as US consumer sentiment sank to an all-time low, underscoring a split between booming markets and anxious households as AI-related job concerns and rising yields weigh on the outlook.
A Kobeissi Letter graphic links decades of data, showing the S&P 500 rising about 130% over six years while US Consumer Sentiment slides roughly 55% to a record low, illustrating what the piece calls the biggest wealth divide in modern history as markets climb and everyday confidence crumbles.
Kevin Warsh is sworn in as Federal Reserve chair at a moment of rising inflation and eroding consumer sentiment, with President Trump backing his independence but warning that growth does not equal inflation. The economy faces high oil prices, tariffs, and AI-related costs, prompting debate over whether to tighten policy or hold. Officials signal no easing bias, and investors are eyeing a possible rate move at the June meeting as they weigh Warsh’s approach against the Fed’s goals of price stability and maximum employment.
The University of Michigan’s May reading shows US consumer sentiment at a record low of 44.2, driven by high gas prices and inflation; expectations for future inflation rose and pessimism is strongest among lower-income and less-educated Americans amid oil-price shocks and ongoing affordability concerns.
Despite solid GDP growth and strong markets, Americans’ confidence in the economy is at historic lows. Vox explains the “vibe gap” — a mismatch between long-running price expectations and current reality — and how decades of low inflation have left people feeling betrayed by today’s inflation and the cost of living, a mood reflected in UMich sentiment surveys and CNN polls.
Rising gas prices weigh on U.S. restaurant sales in March, with traffic down 2.3% year over year; while Chipotle and Shake Shack held up, others like Applebee’s and Brinker International have leaned into value to attract budget-minded customers as low-income diners feel the squeeze.
A University of Michigan survey shows consumer sentiment fell to 48.2 in early May, a fresh low driven by surging gas prices amid Middle East tensions and ongoing inflation fears, with the expectations index nudging higher and the near-term inflation outlook easing slightly even as unemployment remains solid and energy costs stay elevated.
Gas prices are climbing nationwide, led by Indiana, Michigan, Ohio, Wisconsin, and Iowa where weekly increases are the largest; with oil above $100 per barrel due to Iran-related tensions and a refinery outage in northwest Indiana, Midwest prices have spiked, some markets topping $4/gal, driving higher transport costs and weighing on consumer sentiment.