Friday, May 30, 2014

Consumer Confidence Dipped Slightly in May

Consumer sentiment dipped slightly in May to 81.9, a 2.2 point decline from the month prior, according to the University of Michigan Consumer Sentiment index. The index is still at the second highest level this year.

Both current and future expectations declined. Current conditions dropped 4.2 points to 94.5. Future expectations shrank by 1.0 points to 73.7. Following current trend, the gap between current and future expectations remained. Consumers are less optimistic about the future in comparison to the present.

The report indicated that inflationary expectations moved slightly from April, calling for 3.3% inflation over the next year, an improvement of 0.1% and 2.8% over the next 5 years, a decline of 0.1%.

May’s setback indicates that stagnant wage growth may hold back consumer sentiment.

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