US consumer sentiment dropped further in late May to a new decade low as intensifying concerns over inflation weakened the outlook for the economy.
- The University of Michigan’s final May sentiment index fell to 58.4 from a preliminary estimate of 59.1. In April, the index stood at 65.2.
- Households were pessimistic in their short and long-term outlooks for the economy. An index of current conditions dropped to a 13-year low of 63.3, as a measure of future expectations fell to 55.2.
- Consumers expect prices to jump by 5.3% over the next year, holding close to a four-decade high. They expect prices to rise at an annual pace of 3% over the next five to 10 years.
The index of buying conditions for durable goods fell in May to the lowest level on record.
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Source: University of Michigan