Final University of Michigan data shows sentiment dropped below expectations, with inflation expectations rising for both one- and five-year horizons.
US consumer sentiment declined to 44.8 in May, below the expected 48.2, marking a significant drop from the prior month’s 48.2 reading. The decline reflects weaker assessments of current conditions and dimmer future expectations, both falling short of preliminary estimates.
The Index of Current Economic Conditions fell to 45.8 from 47.8, while the Index of Consumer Expectations dropped to 44.1 from 48.5. Inflation expectations also climbed, with one-year expectations at 4.8% and five-year expectations at 3.9%, both above preliminary readings.
The survey, a closely watched gauge of household attitudes, influences broader economic indicators, including the Conference Board’s Leading Economic Index. The final reading incorporates a fuller sample and can shift meaningfully from preliminary data.