{"id":43825,"date":"2026-05-14T10:19:36","date_gmt":"2026-05-14T10:19:36","guid":{"rendered":"https:\/\/financialrush.com\/?p=43825"},"modified":"2026-05-14T10:19:36","modified_gmt":"2026-05-14T10:19:36","slug":"u-s-consumer-sentiment-hits-new-lows-amid-inflation-and-war","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=43825","title":{"rendered":"U.S. consumer sentiment hits new lows amid inflation and war"},"content":{"rendered":"

\n<\/p>\n

<\/p>\n
\n
\n
\n
\n
<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n

American consumers<\/a> have been pessimistic for so long that now economists<\/a> are wondering when \u2014 or even if \u2014 households will ever feel financially better off.<\/p>\n

The University of Michigan Surveys of Consumers<\/a>, a closely-watched bellwether, hit all-time lows in May, according to a preliminary reading released last week. That is just one of several consumer opinion surveys showing Americans have never regained confidence in the U.S. economy<\/a> since the Covid-19<\/a> pandemic struck more than six years ago.<\/p>\n<\/div>\n

\n

Economists told CNBC that consumers remain scarred from years of rapid price increases, even as the annual inflation<\/a> rate cools. On top of that, Americans are worn out by a salvo of economic disruptions \u2014 from Covid to wars<\/a> to President Donald Trump<\/a>‘s tariffs<\/a> \u2014 that have defined the current decade.<\/p>\n

“It’s a series of shocks,” said Yelena Shulyatyeva, senior economist at the Conference Board<\/a>, which conducts another popular gauge of economic confidence. “Consumers don’t get a break.”<\/p>\n<\/div>\n

\n

Price level pain<\/h3>\n

Economists and monetary policymakers typically track the rate of inflation over a 12-month timeframe. By that measure, price growth is closer to the Federal Reserve<\/a>‘s target of 2% than to the four-decade highs<\/a> seen during the pandemic.<\/p>\n

But shoppers have focused on the cumulative change in prices <\/a>over the past several years. From that vantage point, Cleveland Fed President Beth Hammack<\/a> told CNBC, there’s been about a decade’s worth of inflation in half the time.\u00a0<\/p>\n<\/div>\n

\n
\n
\n
\n
\"Watch<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n

“People are starting to hear that inflation is going down, but their box of cereal is still really expensive,” said Kyla Scanlon<\/a>, an economic commentator known for coining the term “vibecession.” <\/a><\/p>\n

“That feels really, really bad,” Scanlon said.<\/p>\n

High prices have caused most of the decline in consumer sentiment between 2019 and 2026, according to a data analysis from PNC Financial Services<\/a>