Consumer Sentiment plummeted to a new all-time low of 44.8 in its final reading for May as both the Current Conditions and Future Expectations subindexes collapsed. This is the first time that all three indexes hit new lows at the same time since November 1953 – just one year after the inception of the Index. With nearly 75 years of historical data, it is truly unprecedented for consumer attitudes to be so dismal.
Not only do consumers feel worse about their current situation than at any other time on record, but they also have more pessimistic expectations of the future. In addition, consumers noted particular concerns over long-run inflation and cost of living as their personal financial situations deteriorate. If these dismal feelings translate into a slowdown in spending, it could have a significant impact on the U.S. economy.