Consumer Sentiment increased 0.5 points in May to 72.3, according to the University of Michigan Consumer Sentiment Index. May’s figure is 27.7 points below the May 2019 index. The Current Economic Conditions Index rose 8.0 points to 82.3. However, the reading was 27.7 points below the May 2019 index. The Consumer Expectations Index fell 4.2 points to 65.9 and was 27.5 points lower than a year ago.
“Consumer sentiment has remained largely unchanged during the past two months, with the final May estimate just a half index point above the April reading. The CARES relief checks and higher unemployment payments have helped to stem economic hardship, but those programs have not acted to stimulate discretionary spending due to uncertainty about the future course of the pandemic. It should not be surprising that a growing number of consumers expected the economy to improve from its recent standstill, or that the majority still thought conditions in the economy would remain unfavorable in the year ahead.” said Richard Curtin, chief economist of UM Surveys of Consumers.
Read the University of Michigan Surveys of Consumers release.