US Consumers Remain Pessimistic Amid Economic Shocks and Persistent Inflation

American consumers have been pessimistic for so long that economists are wondering when — or if — households will ever feel financially better off. The University of Michigan Surveys of Consumers hit all-time lows in May, reflecting prolonged pessimism since the Covid-19 pandemic. Economists attribute this to cumulative inflation effects and sequential economic shocks (Covid, wars, tariffs), leaving consumers with no recovery time between disruptions. Despite cooling annual inflation, shoppers focus on the high cumulative price increases, impacting sentiment more than the inflation rate itself. Consumer spending has surprisingly remained strong, but experts warn that traditional sentiment-spending correlations have broken down, advising to monitor direction rather than pre-pandemic comparisons. The resilience of the US consumer is questioned amid rising oil prices, high gas costs, and the impact of the Iran War, with experts noting that while consumers may 'plug along,' sentiment improvement requires sustained positive conditions, currently unlikely given ongoing geopolitical tensions.