Consumer Sentiment rose to 94.7 in May, up 5.7 points from the previous month, according to the University of Michigan Consumer Sentiment Index.
The Current Economic Conditions Index improved 3.2 points to 109.9, while the Index of Consumer Expectations rose to 7.3 points to 84.9.
“The biggest uncertainty consumers see on the horizon is not whether the Fed will hike interest rates in the next few months, but the outlook for future government economic policies under a new president,” said Richard Curtin, Chief Economist of UM Surveys of Consumers. “This has increased their emphasis on maintaining precautionary savings, although the savings rate is not expected to increase much beyond its current level.”
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