After four consecutive months of declines, consumer sentiment has stabilized, but Americans are still anxious, the University of Michigan’s May Surveys of Consumers found.

According to the surveys, sentiment began turning a corner in the second half of the month following President Donald Trump’s 90-day pause on Chinese import tariffs.

What You Need To Know

  • After four consecutive months of declines, consumer sentiment has stabilized but Americans are still anxious

  • According to the University of Michigan’s May Surveys of Consumers, sentiment began turning a corner in the second half of the month following President Donald Trump’s 90-day pause on Chinese import tariffs

  • “Given that consumers generally expect tariffs to pass through to consumer prices, it is no surprise that trade policy has influenced consumers’ views of the economy,” Surveys of Consumers Chief Economist Joanne Hsu said in a statement accompanying the report Friday

  • Almost two-thirds of consumers (64%) said they expect business conditions to worsen over the coming year

“Given that consumers generally expect tariffs to pass through to consumer prices, it is no surprise that trade policy has influenced consumers’ views of the economy,” Surveys of Consumers Chief Economist Joanne Hsu said in a statement accompanying the report Friday. 

The Consumer Sentiment Index was the same in May as it was in April, holding steady at 52.2. A year ago, sentiment was 69.1. 

“With continued political uncertainty, however, consumers continue to expect an economic slowdown to come,” Hsu added.

The survey found that after Trump’s May 12 pause on Chinese import tariffs, consumers felt more positively about business conditions in the short term, though that positive change was offset by declines in attitudes about their personal finances.

On Friday, however, Trump on Friday accused China of violating its agreement with the U.S.

Nearly two-thirds of consumers (64%) said they expect business conditions to worsen over the coming year. That reading is the same as April but up from 29% who said so in November. 

For three consecutive months, about two-thirds of consumers have also said they expect unemployment to rise — a stark increase from November 2024, when one-third said so.

“Consumers continue to worry that they may be personally impacted by a macroeconomic slowdown,” the survey said. “In an alarming development, consumers are increasingly worried that their own income prospects may be worsening.”

An increasing number of survey respondents said their incomes are stagnating. Fewer than half of consumers said they expect their incomes to grow in the coming year.

Americans are most worried about living costs and purchasing power. The survey registered frustration with high prices, with 38% saying their personal finances have already been eroded and two-thirds (68%) saying they expect their incomes’ purchasing power to be eroded in the coming year.