(University of Michigan) The Index of Consumer Sentiment in the US was recorded at 59.1 in early May, declining by 9.4% from the previous month. The index came short of expectations of 64 and was the lowest since 2011.
The consumer sentiment gauge has now dropped by 28.7% from last year, with the decline connected to the concerns of high inflation. Consumers are already expecting prices to gain by 54% over the next year.
The Current Economic Conditions also worsened, with the index at 63.6, compared to a reading of 69.4 in April. The index is 28.9% below last year.
Americans remained less upbeat about the future, with the Index of Consumer Expectations falling to 56.3, compared to 62.5 in April. The index is 28.6% below last year.
Surveys of Consumers Director Joanne Hsu says that consumers remained less upbeat, with almost half of the respondents expecting income squeezes over the next twelve months due to high inflation.
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