Story perspectives

Consumer Sentiment Hits 74-Year Low Amid Gasoline Spike

5/23/2026

Summary

Consumer Sentiment Falls

The Consumer Sentiment Index fell to 44.8 in May 2026, the lowest in 74 years, after dropping from April’s 49.8 and beating the prior record low of about 50.5 in June 2022.
One-third of respondents cited gasoline prices, linked to the Iran-related Strait of Hormuz conflict, as their main worry.
Inflation expectations rose to 4.8% and 3.9% while the two components fell to lows of 45.8 and 44.1.

Summary

Trump Approval Drops

May Reuters/Ipsos poll shows President Donald Trump’s approval rating fell to its lowest since his return, driven by economic discontent.
Gallup’s May survey finds three-quarters of adults say the economy is worsening, with only 16 % rating it good or excellent.
Despite the slump, the Dow Jones Industrial Average hit a record high, the first since the Iran war began.

Summary

Rupkey Flags Decline

Chief economist Christopher Rupkey said stock-market highs do not lift consumer mood because most Americans have savings locked in 401(k) accounts.
The May sentiment survey, run April 21-May 18, shows long-run inflation expectations have more than doubled compared with February 2025 readings.
AAA reports gasoline prices have risen over 50 % since the Iran war began at the end of February.
Overall consumer prices are about 25 % higher than in January 2020.

Summary

Trump Sentiment Falls

Director Joanne Hsu said consumers without college degrees and lower-income households had the largest sentiment declines.
Independents and Republicans gave President Donald Trump’s administration their lowest sentiment ratings, while Democrats stayed unchanged since April.
Republicans expect inflation at more than twice the February 2025 level, prompting Fed Governor Christopher Waller to say rising one-to-five-year expectations are concerning.
The rally has not lifted morale because most savings sit in 401(k) retirement accounts.

History

Historical Context

The October 1973 OAPEC oil embargo, launched after the United States resumed arms shipments to Israel, forced President Richard Nixon’s administration into emergency talks and sent U.S. gasoline prices up 43% within a year. The shock drove consumer confidence to a historic low. The May 2026 sentiment index, falling to 44.8, echoes the 1973 slump as renewed Strait-of-Hormuz tensions lift fuel costs again.

1 of 5

Consumer Sentiment Falls

The Consumer Sentiment Index fell to 44.8 in May 2026, the lowest in 74 years, after dropping from April’s 49.8 and beating the prior record low of about 50.5 in June 2022.
One-third of respondents cited gasoline prices, linked to the Iran-related Strait of Hormuz conflict, as their main worry.
Inflation expectations rose to 4.8% and 3.9% while the two components fell to lows of 45.8 and 44.1.

1 / 5