Consumer Sentiment Falls in May

Consumer Sentiment was 82.9 in May according to the University of Michigan Consumer Sentiment Index. May’s figure was 6.1 points lower than the April reading but is 14.7 points above the May 2020 index. The Current Economic Conditions Index fell 8.0 points from the previous month to 89.4 but is 8.6 points above the May 2020 index. The Consumer Expectations Index declined 4.7 points to 78.8 but is 19.6 points higher from a year ago.

“Consumer confidence remained largely unchanged at the reduced level recorded at mid-month. It is hardly surprising that the resurgent strength of the economy produced more immediate gains in demand than supply, causing consumers to expect a surge in inflation. Record proportions of consumers reported higher prices across a wide range of discretionary purchases, including homes, vehicles, and household durables.” said Richard Curtin, chief economist of UM Surveys of Consumers.

Read the University of Michigan Surveys of Consumers release.