High oil prices and inflationary pressures continue to impact economic expectations, causing consumer confidence in the United States to fall to a record low in May.

Pessimism among American consumers about the economic outlook is intensifying. Data released by the University of Michigan on Friday showed that the US consumer confidence index fell to 44.8 in May, hitting a historic low. This figure not only was lower than the final value of 49.8 in April, but also slightly lower than the previous historic low set in June 2022. Joanne Hsu, director of the University of Michigan survey, stated that current American consumers' pessimism about the economy even exceeds that during the COVID-19 pandemic, the 2008 financial crisis, and after the 9/11 attacks. The data shows that American consumer confidence has dropped by 10% compared to the previous month and by 13.2% compared to the same period last year. The main reasons dragging down consumer sentiment are the surge in oil prices triggered by the Middle East conflict and the continuous rise in living costs. Hsu mentioned that the decline in consumer confidence is particularly evident among low-income groups and consumers without a college education, as these groups are more sensitive to the rising prices of gasoline and daily necessities. According to AAA data, since the outbreak of the Middle East conflict, the average price of gasoline in the United States has risen by over $1.5, with the national average approaching $5 per gallon. Currently, the average gas prices in all states in the US have exceeded $4 per gallon, with California's average gas price already surpassing $6. GasBuddy analyst Patrick De Haan stated that compared to last year, US consumers are expected to spend about $2 billion more on gasoline over the Memorial Day four-day holiday period. At the same time, consumer inflation expectations continue to rise. Data shows that American consumers' inflation expectations for the next year have risen to 4.8%, higher than April's 4.7%, and higher than the initial value of 4.5% announced earlier this month. Long-term inflation expectations have also risen from 3.5% in April to 3.9%, reaching the highest level since October 2025. Hsu mentioned that consumer concerns about inflation pressures may not be limited to energy prices and could further spread to a wider range of areas and persist for a longer period. High oil prices are gradually transmitting to transportation, packaging, and retail costs. Walmart Inc. CFO John David Rainey stated this week that the company is already feeling the pressure from rising transportation, packaging, and raw material costs. The continued deterioration of consumer confidence indicates that the US economy may face greater pressure in the future. With high oil prices, rising inflation, and the Federal Reserve maintaining high interest rates, consumer spending momentum in the US may further slow down, posing new challenges to the country's economic growth prospects.