US consumer sentiment revised up in May, but still at 5-month low

NEW YORK (AA): US consumer sentiment was revised up in May, but it is still at its lowest level in five months, according to final results from the University of Michigan’s consumer survey released Friday.

The index of consumer sentiment fell 8.1 points to 69.1 in May, from 77.2 in April. The initial estimate for the index was 67.4.

“This 8.1 index-point decrease is statistically significant and brings sentiment to its lowest reading in about five months,” Surveys of Consumers Director Joanne Hsu said in a statement. “The year-ahead outlook for business conditions saw a particularly notable decline, while views about personal finances were little changed.”

“Consumers expressed particular concern over labor markets; they expect unemployment rates to rise and income growth to slow. The prospect of continued high interest rates also weighed down consumer views,” she added.

Year-ahead inflation expectations rose from 3.2% last month to 3.3% this month, still remaining above the 2.3-3.0% range seen in the two years prior to the coronavirus pandemic, according to the report.

That figure eased to 2.9% in January, when it had marked its lowest reading since December 2020.