Uni Michigan sentiment revised down in May
By Michele Maatouk
Date: Friday 25 May 2018
(Sharecast News) - Consumer sentiment in the US was weaker than originally estimated in May, according to the final reading from the University of Michigan.
The consumer sentiment index printed at 98.0 from 98.8 in April and 97.1 in May 2017, down from the initial reading of 98.8.
Meanwhile, the current economic conditions index fell to 111.8 from 114.9 in April and 111.7 in May last year.
The index of consumer expectations rose to 89.1 in May from 88.4 the month before and 87.7 in May 2017.
Survey of Consumers chief economist Richard Curtin said: "Since Trump's election, the sentiment Index has meandered in a tight eight-point range from 93.4 to 101.4, with the small month-to-month variations indicating no emerging trend. Consumers have remained focused on expected gains in jobs and incomes as well as anticipated increases in interest rates and inflation during the year ahead. As past expansions have shown, rising interest rates do not suppress spending gains as long as they are accompanied by more substantial increases in incomes.
"The May survey, however, found that consumers anticipated smaller income gains than a month or year ago, even though they anticipate the unemployment rate to stabilize at its current eighteen year low. Importantly, references to discounted prices for durables, vehicles, and homes fell to decade lows. Coupled with higher interest rates, it is likely that the pace of growth in personal consumption will remain at about 2.6% during the year ahead."
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