U.S. consumer sentiment drops to 6-month low on inflation, unemployment fears
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U.S. consumer sentiment fell sharply in May to the lowest level in six months as Americans cited stubbornly high inflation and interest rates, as well as fears that unemployment could rise. The University of Michigan’s consumer sentiment index dropped to 67.4 this month from a final reading of 77.2 in April. May’s reading is still about 14 percent higher than a year ago. Consumer spending is a crucial driver of growth. Sour sentiment about the economy is also weighing on President Joe Biden’s reelection bid. Consumer price increases have been stuck at an elevated level this year, after a sharp drop last year from a peak of 9.1 percent in June 2022 to 3 percent a year later. In March, prices rose 3.5 percent compared with a year ago, up from 3.2 percent in the previous month. The consumer sentiment survey found that Americans expect inflation will stay higher over the next year at 3.5 percent. The drop in overall consumer sentiment occurred across age, income, and education levels, and political lines, falling among Democrats, Republicans, and independents.

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https://www.pbs.org/newshour/economy/u-s-consumer-sentiment-drops-to-6-month-low-on-inflation-unemployment-fears