The Consumer Sentiment Index in the United States slid 2.7% in May compared to the month prior, to stand at 50.8, a preliminary report posted by the University of Michigan showed on Friday. The figure plummeted 26.5% on an annual level.
The Current Economic Conditions Index tumbled 3.7% in the reported period compared to April and plunged 17.2% compared to May 2024, landing at 57.6 points. The Index of Consumer Expectations was down 1.7% on a monthly basis and nosedived 32.4% on a yearly basis, coming in at 46.5.
"Year-ahead inflation expectations surged from 6.5% last month to 7.3% this month. This month's rise was seen among Democrats and Republicans alike. Long-run inflation expectations lifted from 4.4% in April to 4.6% in May," it was written in the report. It was also mentioned that "uncertainty over trade policy continues to dominate consumers' thinking about the economy."
