WASHINGTON (MNI) – The final reading of U.S. consumer sentiment
rose in May, and was abovew expectations, according to the
Reuters/University of Michigan Consumer Sentiment survey released
Friday.
The index came in at 74.3 — above median expectations of 72.4 —
vs. the initial reading of 72.4 reported earlier in the month and
above/below the 69.8 level reported at the end of April. The consumer
sentiment index was 67.5 in March and 77.5 in February.
The index’s final reading for consumers’ view of current conditions
in May was reported at 81.9, up from the 80.2 intially reported and vs.
82.5 in April. The index was 82.5 in March, while February’s was better
at 86.9.
The final index of consumers’ expectations rose to 69.5 vs.
61.6 in April, and after 57.9 was reported for March and 71.6 in
February.
Consumers’ preliminary 1-year inflation expectations for May was
4.1%, down from initial expectations of 4.4%. This compared
with the 4.6% expectation reported for April. Final five-year inflation
expectations dropped in May, 2.9% vs 3.0% in the preliminary report
and 2.9% last month.
The fall in the outlook for 1-year inflation fell for the first
time since September last year.
The uptick in consumers’ view of current conditions is despite
tepid spending data released Friday. Consumer spending in
the U.S. rose less than expected in April as high gasoline prices
continued to pressure household budgets, according to government data
which also showed annual inflation accelerating by 1.0%.
The Commerce Department said personal spending increased 0.4%,
rising for a 10th straight month, after a downwardly revised
0.5 percent gain in March.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MAUDS$]
