University of Michigan consumer sentiment index falls to lowest level in 75-year survey history amid record stock prices and job growth

The University of Michigan's preliminary May consumer sentiment index fell to 48.2, down from April's 49.8, marking the lowest level ever recorded in the survey's history dating back to 1952.

About one-third of consumers spontaneously mentioned gasoline prices as a major concern, while roughly 30% mentioned tariffs. These immediate expenses on energy, groceries, utilities, and transportation often force households to pull back on discretionary spending in areas like restaurants, travel, apparel, consumer electronics, entertainment, and home improvement.

This collapse in consumer confidence is occurring while the S&P 500 recently pushed to another all-time high, employers added 115,000 jobs in April versus expectations for 65,000, and unemployment held steady at 4.3%, creating a sharp divergence where Wall Street and Main Street are sending opposite signals.