12:16 PM EDT, 05/16/2025 (MT Newswires) -- US consumer sentiment unexpectedly deteriorated in May, hitting the lowest reading in nearly three years, as inflation expectations mounted, preliminary results from a University of Michigan survey showed Friday.

The main sentiment gauge slid to 50.8 this month from 52.2 in April, marking the lowest point since June 2022. The consensus was for a 53.5 print in a survey compiled by Bloomberg. The latest report showed sentiment falling for the fifth straight month.

Consumer mood has declined almost 30% since January, according to Joanne Hsu, Surveys of Consumers director.

The gauge for current economic conditions fell 3.7% sequentially to 57.6, while the expectations measure dropped 1.7% to 46.5, according to the survey results. Tariffs were mentioned by nearly three-quarters of consumers, up from almost 60% in April, Hsu said.

Year-ahead inflation expectations surged to 7.3% this month from 6.5% in April, while the long-run outlook rose to 4.6% from 4.4%.

The April 22 to May 13 survey closed two days after a US-China tariff truce was announced, according to Hsu. Washington and Beijing agreed to suspend reciprocal duties on each other's goods for 90 days.

"Many survey measures showed some signs of improvement following the temporary reduction of China tariffs, but these initial upticks were too small to alter the overall picture -- consumers continue to express somber views about the economy," Hsu said. "The initial reaction so far echoes the very minor increase in sentiment seen after the April 9 partial pause on tariffs, despite which sentiment continued its downward trend."

On Tuesday, official data showed consumer prices rebounded last month, but missed Wall Street's estimates, while annual inflation eased to the lowest level since February 2021.

US tariffs are likely to raise inflation and unemployment amid an expected economic slowdown, Federal Reserve Governor Michael Barr said last Friday. The Fed recently left its benchmark lending rate unchanged and warned that upside risks to inflation and unemployment had increased.