U.S. Consumer Sentiment Index Dips To New Record Low In May
(RTTNews) - Consumer sentiment in the U.S. has deteriorated by more than anticipated in the month of May, according to preliminary data released by the University of Michigan on Friday.
The University of Michigan said its consumer sentiment index fell to 48.2 in May from 49.8 in April. Economists had expected the index to edge down to 49.3.
With the bigger than expected decrease, the consumer sentiment index dropped to its lowest reading on records going back to 1952.
"About one-third of consumers spontaneously mentioned gasoline prices and about 30% mentioned tariffs," said Surveys of Consumers Director Joanne Hsu. Taken together, consumers continue to feel buffeted by cost pressures, led by soaring prices at the pump."
She added, "Middle East developments are unlikely to meaningfully boost sentiment until supply disruptions have been fully resolved and energy prices fall."
The current economic conditions index slid to 47.8 in May from 52.5 in April, with Hsu citing the surge in concerns about high prices both for personal finances as well as buying conditions for major purchases.
Meanwhile, the University of Michigan said the index of consumer expectations crept up to 48.5 in May from 48.1 in April.
The report also said year-ahead inflation expectations slipped to 4.5 percent in May from 4.7 percent in April but still substantially exceed the 3.4 percent reading seen in February prior to the start of the Iran war,
Long-run inflation expectations also edged down to 3.4 percent in May from 3.5 percent in April, the University of Michigan said.
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