American consumer confidence is expected to have deflated in early May, as households have been growing more pessimistic about current conditions and the broader economic outlook, according to preliminary data from the University of Michigan.
The closely watched Consumer Sentiment Index receded to 48.2 from 49.8 in the previous month, missing economists’ expectations (49.5) and signalling some weaknening in public confidence
Furthermore, the Current Conditions index edged lower to 47.8 from 52.5, while the Expectations gauge improved marginally to 48.5 from 48.1, highlighting a tepidly upbeat scenario for the months ahead. Inflation expectations, meanwhile, appear to have cooled somewhat: the one-year outlook eased to 4.5% (from 4.7%), and the five-year forecast decelerated to 3.4% (from 3.5)%. Market reaction The US Dollar remains well offered, flirting with the area of multi-week lows and sending the US Dollar Index (DXY) back below the 98.00 threshold.
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