Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

US consumer sentiment drops to 6-month low on inflation, unemployment fears

Consumer sentiment fell sharply in May to the lowest level in six months as Americans cited concerns about stubbornly high inflation and interest rates and fears that unemployment could rise

Christopher Rugaber
Friday 10 May 2024 10:19 EDT
Consumer Sentiment
Consumer Sentiment (Copyright 2024 The Associated Press. All rights reserved.)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

U.S. consumer sentiment fell sharply in May to the lowest level in six months as Americans cited stubbornly high inflation and interest rates, as well as fears that unemployment could rise.

The University of Michigan’s consumer sentiment index, released Friday in a preliminary version, dropped to 67.4 this month from a final reading of 77.2 in April. That is still about 14% higher than a year ago. Consumers' outlook has generally been gloomy since the pandemic and particularly after inflation first spiked in 2021.

Consumer price increases have been stuck at an elevated level this year, after a sharp drop last year from a peak of 9.1% in June 2022 to 3% a year later. In March, prices rose 3.5% compared with a year ago, up from 3.2% in the previous month. Federal Reserve officials have underscored this month that they will likely keep their benchmark interest rate at a 23-year high for as long as needed to get inflation back to their 2% target.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in