Overview
- America’s benchmark sentiment gauge from the University of Michigan fell to an all‑time low in its preliminary May reading.
- New polling shows 61% of adults say the economy is getting worse, the highest share since mid‑2022 under President Trump.
- Inflation climbed to a three‑year high, with oil holding above $100 a barrel and average gasoline prices topping $4, which is squeezing family budgets.
- Recent surveys report widespread belt‑tightening, including 43% cutting non‑essential spending, 24% cutting essentials, and 16% using savings for daily costs.
- Consumer spending and the stock market remain strong, a disconnect many economists link to a “vibe gap” driven by broken expectations for stable prices after decades of low inflation.