US consumer sentiment slides to six-month low in May

By Thomson Reuters May 10, 2024 | 9:18 AM

WASHINGTON (Reuters) – U.S. consumer sentiment sagged to a six-month low in May amid growing anxiety about inflation, unemployment and interest rates, a survey showed on Friday.

The University of Michigan’s preliminary reading on the overall index of consumer sentiment came in at 67.4 this month, compared to a final reading of 77.2 in April. Economists polled by Reuters had forecast a preliminary reading of 76.0.

“While consumers had been reserving judgment for the past few months, they now perceive negative developments on a number of dimensions,” said Surveys of Consumers Director Joanne Hsu in a statement. “They expressed worries that inflation, unemployment and interest rates may all be moving in an unfavorable direction in the year ahead.”

The survey’s reading of one-year inflation expectations rose to 3.5% in May from 3.2% in April. Its five-year inflation outlook increased to 3.1% from 3.0% in the prior month.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)