Notizie economiche
24.05.2024

U.S. consumer sentiment worsens slightly less than initially estimated in May

The final reading for the May Reuters/Michigan index of consumer sentiment came in at 69.1 compared to the flash reading of 67.4 and the April final reading of 77.2. Still, this was the lowest reading in six months.

Economists had predicted the indicator to be revised slightly up to 67.5.        

The details of the latest Surveys of Consumers of the University of Michigan revealed that the index of current economic conditions plunged by 11.9 per cent m-o-m to 69.6 this month while the index of consumer expectations tumbled by 9.5 per cent m-o-m to 68.8.

The report also revealed that the year-ahead inflation expectations increased from 3.2 per cent in April to 3.3 per cent in May, compared to the preliminary reading of 3.5 per cent. This represented the highest reading since November 2023 (4.5 per cent). Meanwhile, the 5-year inflation expectations remained unchanged at 3.0 per cent, compared to the preliminary estimates of 3.1%.

Commenting on the latest results, Joanne Hsu, Surveys of Consumers Director, said an 8.1 index-point decrease in the headline index in May is statistically significant. She also noted that the year-ahead outlook for business conditions saw a particularly notable decline and consumers expressed particular concern over the labour market. “The prospect of continued high interest rates also weighed down consumer views,” Hsu added and cautioned that these deteriorating expectations suggest that multiple factors pose a downside risk for consumer spending.

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