UMich final May US consumer sentiment 59.2 vs 57.7 expected

• Prelim was 57.7
• Prior was 63.5

Details:

• Current conditions 64.9 vs 64.5 prelim (68.2 prior)
• Expectations 55.4 vs 53.4 prelim (60.5 prior)
• 1-year inflation 4.2% vs 4.5% prelim (4.6% prior)
• 5-10 year inflation 3.1% vs 3.2% prelim (3.0% prior)

This is a great report all around, with sentiment not falling as far as the prelim data and inflation not as strong. A resolution to the debt ceiling should help even more, though the recent rise in interest rates could be a drag next month.

The market reaction has been minimal.

Comments in the report:

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. This decline mirrors the 2011 debt ceiling crisis, during which sentiment also plunged. This month, sentiment fell severely for consumers in the West and those with middle incomes. The year-ahead economic outlook plummeted 17% from last month. Long-run expectations plunged by 13% as well, indicating that 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.

Year-ahead inflation expectations receded to 4.2% in May after spiking to 4.6% in April. Uncertainty, as measured by the interquartile range of these expectations has been elevated, averaging 7.8 over the last 12 months, but fell this month to 5.7, the lowest level of uncertainty in almost two years. This suggests that consumer views over short-run inflation may be stabilizing following four months of vacillation. Long-run inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term expectations inched up for the second straight month but remained within the narrow 2.9-3.1% range for 21 of the last 22 months.