The final reading for the May Reuters/Michigan index of consumer
sentiment came in at 59.2 compared to the flash reading of 57.7 and the April final
reading of 63.5. This, however,
still was the lowest reading
in six months.
Economists had foreseen the indicator to remain unrevised at 57.7.
The details of the latest Surveys of Consumers of the University of Michigan
revealed that the index of current economic conditions fell 4.8 percent m-o-m to
64.9 this month, while the index of consumer expectations declined 8.4 percent
m-o-m to 55.4.
The report also showed that the estimates of year-ahead expected inflation
decreased from 4.6 percent in April to 4.2 percent in May compared to the
preliminary reading of 4.5 percent. Meanwhile, the 5-year inflation expectations rose from 3.0
percent in April to 3.1 percent, compared to the preliminary estimate of 3.2
percent. That was the highest reading since June 2022 (3.1 percent).
Commenting on the latest results, Joanne Hsu, Surveys of Consumers
Director, noted that May's 7% decrease in consumer sentiment reflected rising
worries about the path of the economy and mirrored the 2011 debt ceiling
crisis, during which sentiment also declined.