Year-ahead inflation expectations softened a bit from 4.7 percent in April to 4.5 percent in May, she said, adding that the reading still substantially exceeds the 3.4-percent reading seen in February prior to the start of the Iran war.

　　"Middle East developments are unlikely to meaningfully boost sentiment until supply disruptions have been fully resolved and energy prices fall," said Hsu.

　　A customer verifies a receipt at a store in New York, the United States, May 8, 2026. The U.S. Consumer Sentiment Index fell to 48.2 in May 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 49.8 in April 2026. (Xinhua/Zhang Fengguo)

　　Customers check price at a store in New York, the United States, May 8, 2026. The U.S. Consumer Sentiment Index fell to 48.2 in May 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 49.8 in April 2026. (Xinhua/Zhang Fengguo)

　　Photo taken on May 8, 2026 shows a discount shop in New York, the United States. The U.S. Consumer Sentiment Index fell to 48.2 in May 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 49.8 in April 2026. (Xinhua/Zhang Fengguo)