U.S. Consumer Sentiment Falls Sharply in May Amid Inflation Fears and Trade Policy Concerns

U.S. Consumer Sentiment Falls Sharply in May Amid Inflation Fears and Trade Policy Concerns

U.S. consumer sentiment dropped to 50.8 in May, nearing historic lows, as inflation expectations soared. The University of Michigan reports that one-year inflation expectations jumped to 7.3%, the highest since 1981, with long-term forecasts also rising. The decline reflects growing public concern over the economic fallout from President Donald Trump’s aggressive and unpredictable trade policies, despite a temporary U.S.-China tariff truce.

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