2023.05.2614:35:00UTC+00U.S. Consumer Sentiment Deteriorates Less Than Previously Estimated In May

Consumer sentiment in the U.S. deteriorated less than previously estimates in the month of May, according to revised data released by the University of Michigan on Friday.

The report said the consumer sentiment index for May was upwardly revised to 59.2 from the preliminary estimate of 57.7. Economists had expected the index to be unrevised.

The consumer sentiment index is still down from 63.5 in April and at its lowest level since hitting 59.7 last December.

"Consumer sentiment slid 7% amid worries about the path of the economy, erasing nearly half of the gains achieved after the all-time historic low from last June," said Surveys of Consumers Director Joanne Hsu. "This decline mirrors the 2011 debt ceiling crisis, during which sentiment also plunged."

Hsu highlighted steep drops in the year-ahead economic outlook as well as long-run expectations, which she said indicate consumers are concerned that any recession to come may cause lasting pain.

"That said, consumer views over their personal finances are little changed from April, with stable income expectations supporting consumer spending for the time being," she added.

The report showed the current economic conditions index fell to 64.9 in May from 68.2 in April, while the index of consumer expectations slid to 55.4 from 60.5.

Hsu also said year-ahead inflation expectations receded to 4.2 percent in May after spiking to 4.6 percent in April, while long-run inflation expectations inched up to 3.1 percent from 3.0 percent.