Record Low Consumer Sentiment 5/20/26

Summary

---

Your Money Minute – Record Low Consumer Sentiment (5/20/26)

Host: Jessica Ettinger
Guests: Melissa Lee (CNBC), Jim Bianco (Bianco Research President)
Original Air Date: May 20, 2026

---

Episode Overview

This episode of "Your Money Minute" dives into the sharp drop in U.S. consumer sentiment, now at a record low according to new data from the University of Michigan. Jessica Ettinger and CNBC’s Melissa Lee discuss what’s driving this negative outlook, with expert Jim Bianco offering perspective on the so-called "K-shaped" recovery, highlighting widening disparities among Americans in the current economy.

---

Key Discussion Points & Insights

1. Record Low Consumer Sentiment

• Melissa Lee reveals: May’s consumer sentiment has fallen to its lowest point since tracking began in 1952, per the University of Michigan survey.
  • "Consumer sentiment fell to a record low in May. The University of Michigan, which has been tracking the data since 1952, citing cost pressures from surging gas prices." (Melissa Lee, 00:11)
• High gas prices and cost pressures are pinpointed as primary causes.

2. Impact Disparity: The 'K-Shaped' Economy

• Jim Bianco contextualizes: While the measure is broad, economic pain is felt unevenly.
  • "Let's remember that about half of all consumer spending is done by the top 10% of income. They're doing fine." (Jim Bianco, 00:27)
• Wealthier Americans are reportedly weathering inflation better, with most spending coming from the top 10%.
• For the majority, affordability has become a critical concern.
  • "The masses of people as expressed by the University of Michigan consumer sentiment are very unhappy about affordability. Prices are too high. There's too much inflation. There's too much accumulated inflation." (Jim Bianco, 00:48)
• Bianco introduces the "K-shaped" economy:
  • "What I just described is the K-shaped economy and it's getting more K if anything. If I could use some bad English there." (Jim Bianco, 01:03)
  • The "top right leg" of the K represents the affluent, who are doing fine; the "bottom right leg" represents lower-income Americans, experiencing more hardship.

3. Where to Learn More

• Jessica Ettinger invites listeners:
  • "You can read all about the K-shaped economy where the top right leg of the letter K represents people with more money and the bottom right leg represents people with less. @cnbc.com." (Jessica Ettinger, 01:07)

---

Notable Quotes & Memorable Moments

• On current sentiment:
  "Consumer sentiment at a 74 year low according to University of Michigan. That is the broad measure of lots of people."
  — Jim Bianco (00:27)

• On inequality:
  "Turns out wealthier people aren't struggling so much, but the majority of people are."
  — Jessica Ettinger (00:43–00:48, paraphrased summary)

• On the K-shaped recovery:
  "What I just described is the K shaped economy and it's getting more K if anything. If I could use some bad English there."
  — Jim Bianco (01:03)

---

Important Timestamps

• [00:00] Opening & setup: Jessica introduces the topic and hands off to Melissa Lee for recent data.
• [00:11-00:20] Melissa Lee summarizes University of Michigan’s consumer sentiment findings.
• [00:27-01:07] Jim Bianco explains the inequality underpinning the sentiment data and describes the K-shaped recovery.
• [01:07-01:21] Jessica Ettinger ties the topic together, prompts listeners to learn more at CNBC, and summarises the K-shaped economy analogy.

---

Tone & Language

The episode maintains a brisk, informative tone with clear, accessible explanations for listeners concerned about their finances and the broader economic picture.

---

For an in-depth explanation of today’s headlines and to explore more about the economy’s K-shaped recovery, visit CNBC.com.

Transcript

[A]

With a CNBC your Money minute. I'm Jessica Ettinger. You are a consumer. So how are you feeling about the economy? Here's CNBC's Melissa Lee with the latest national data.

[B]

Consumer sentiment fell to a record low in May. The University of Michigan, which has been tracking the data since 1952, citing cost pressures from surging gas prices.

[A]

Consumer sentiment at a record low in the U.S. here's Bianco Research President Jim Bianco on CNBC.

[C]

Consumer sentiment at a 74 year low according to University of Michigan. That is the broad measure of lots of people. But let's remember that about half of all consumer spending is done by the top 10% of income. They're doing fine.

[A]

Turns out wealthier people aren't struggling so much, but the majority of people

[C]

are. The masses of people as expressed by the University of Michigan, consumer sentiment are very unhappy about affordability. Prices are too high. There's too much inflation. There's too much accumulated inflation. What I just described is the K shaped economy and it's getting more K if anything. If I could use some bad English there,

[A]

you can read all about the K shaped economy where the top right leg of the letter K represents people with more money and the bottom right leg represents people with less. @cnbc.com I'm Jessica Edinger. CNBC

[D]

Trading at Schwab is powered by Ameritrade, giving you even more specialized support than ever before. Like access to the trade desk. Our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy. Gut check. Need assistance? No problem. Get 24. 7 professional answers and live help. And access support by phone, email and in platform chat. That's how Schwab is here for you to help you trade brilliantly. Learn more at schwab. Com Trading.