Americans’ optimism about the economy is at a near-record low

Americans’ feelings about the US economy remain in the doldrums: Consumer sentiment continued its freefall this month, settling in at a near-record low. The University of Michigan’s closely watched consumer sentiment index fell 2.7% to a preliminary reading of 50.8 for May, dropping further from April’s reading of 52.2. President Donald Trump’s sweeping and steep tariffs and other policy shifts have stoked recession fears and sent sentiment readings south every month this year. Economists expected that sentiment could improve in May, forecasting a reading of 55, according to FactSet estimates. There have been positive developments in Trump’s trade war to start the month, notably an unexpected détente and de-escalation in tariffs between the US and China, announced in full on May 12. The survey period for the preliminary report ended May 13. This story is developing and will be updated.