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US consumer sentiment deteriorates further in May
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US consumer sentiment deteriorates further in May
May 26, 2025 9:36 AM

WASHINGTON (Reuters) -U.S. consumer sentiment slumped further in May while one-year inflation expectations surged as households remained concerned about the economic impact of President Donald Trump's aggressive and often erratic trade policy.

The University of Michigan Surveys of Consumers on Friday said its Consumer Sentiment Index dropped to 50.8 this month from a final reading of 52.2 in April. Economists polled by Reuters had forecast the index rising to 53.4.

"Tariffs were spontaneously mentioned by nearly three-quarters of consumers, up from almost 60% in April; uncertainty over trade policy continues to dominate consumers' thinking about the economy," said Surveys of Consumers Director Joanne Hsu. "Slight increases in sentiment this month for independents were offset by a 7% decline among Republicans."

Consumers' 12-month inflation expectations jumped to 7.3% from 6.5% in April. Both Democrats and Republicans anticipated higher inflation in the near term. 

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