Michigan consumer sentiment index drops to record low in early May

(Sharecast News) - US consumer sentiment dropped to a record low of 48.2 in early May, according to preliminary figures from the University of Michigan, down from April's 49.8 print and falling short of expectations of 49.5.

The current conditions component fell roughly 9% to 47.8, principally due to elevated concerns regarding how heightened prices will weigh on personal finances and buying conditions for major purchases. The expectations index, on the other hand, edged up to 48.5.

Roughly one-third of consumers cited gasoline prices, while approximately 30% pointed to tariffs.

Year-ahead inflation expectations eased, dropping from 4.7% to 4.5%, while long-run inflation expectations dipped from 3.5% to 3.4%.

Reporting by Iain Gilbert at Sharecast.com