U.S. consumer sentiment dropped for the third straight month in May as supply disruptions in the Strait of Hormuz continue to push up gasoline prices, according to the University of Michigan Surveys of Consumers released on Friday.
The U.S. Consumer Sentiment Index released Friday by the University of Michigan (UM) Surveys of Consumers fell to 44.8 in the May 2026 survey, down from 49.8 in April and below last May's 52.2.
The Current Index fell to 45.8, down from 52.5 in April and below last May's 58.9. The Expectations Index fell to 44.1, down from 48.1 in April and below last May's 47.9.
The cost of living remains the primary concern, with 57 percent of consumers reporting that high prices are eroding their personal finances, up from 50 percent in April, the surveys found.
Lower-income consumers and those without college degrees posted particularly strong declines in sentiment, as they are more sensitive to increases in the cost of gas and other essentials, according to the surveys.
According to the surveys, year-ahead inflation expectations inched up from 4.7 percent last month to 4.8 percent in May. Consumers appear worried that inflation will increase and proliferate beyond fuel prices, even in the long run.
Long-run inflation expectations climbed from 3.5 percent in April to 3.9 percent in May, notably higher than the 2.8 percent to 3.2 percent range seen in 2024.
US consumer sentiment drops for third straight month
The 32nd Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting concluded in east China's Suzhou on Saturday, yielding fruitful results and laying significant groundwork for the APEC Economic Leaders' Meeting in November.
The trade ministers' meeting focused on "building an open and predictable regional and multilateral economic and trade order" and "fostering new engines of innovative and dynamic trade and investment cooperation."
Chinese Commerce Minister Wang Wentao briefed the media on the meeting's outcomes at a press conference.
Wang said the meeting issued a joint statement titled the Suzhou Statement, and approved the latest edition of the APEC Roadmap for Innovative, Competitive and Resilient Services.
All parties agreed to advance policy innovation and reform in services trade, build an open and predictable investment environment, improve regional trade facilitation and supply chain resilience, strengthen standards coordination, and enhance intellectual property protection, Wang told the media.
He also said that substantial progress was made on a framework document for regional digital trade cooperation and the ministers emphasized promoting inclusive AI development, strengthening AI-related trade, and bridging the digital divide to ensure shared benefits from digital transformation.
The minister noted that the outcomes of the meeting demonstrated strong cooperation willingness, highlighted an innovation-oriented approach, and reflected inclusiveness and shared benefits. "The fact that Asia-Pacific economies can come together, uphold the original aspiration of promoting trade and investment liberalization and facilitation while supporting economic growth and prosperity, and engage in in-depth discussions on the important issue of 'where multilateral and regional economic and trade cooperation is headed,' fully demonstrates that open regionalism and true multilateralism enjoy broad support, and that mutual success and shared development serve the fundamental interests of all economies," Wang said.
2026 APEC trade ministers' meeting concludes with fruitful results
