MICHIGAN (dpa-AFX) – US consumer sentiment deteriorated more than expected in May. The consumer climate surveyed by the University of Michigan fell by 6.8 points to 58.4 points compared to the previous month, as the university announced on Friday after a second round of surveys. This is the lowest level since 2011. On average, economists had expected a confirmation of the initial estimate of 59.1 points.
Household expectations and assessments of the current situation deteriorated noticeably. Consumer inflation expectations remained high. They expect an inflation rate of 5.3 percent over a one-year horizon.
“This recent decline is largely due to continued negative views on current purchasing conditions for homes and durable goods,” commented Joanne Hsu, director of the survey. High inflation is dampening expectations of economic development.
The indicator from the University of Michigan is a measure of the purchasing behavior of US consumers. It is based on a telephone survey of around 500 households. The financial and economic situation assessment and the corresponding expectations are queried./jsl//he