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.<\/p>\n
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.<\/p>\n
The consumer sentiment index is still down from 63.5 in April and at its lowest level since hitting 59.7 last December. <\/p>\n
“Consumer sentiment slid 7% amid worries about the path of the economy<\/span>, 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.”<\/p>\n 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. <\/p>\n “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.<\/p>\n 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.<\/p>\n 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. <\/p>\n