Consumer Sentiment Worsens Sharply as Inflation, Interest Rates Worry Americans – By Tim Smart (US News) / May 10, 2024
The 10-point decline in the University of Michigan’s index was deemed ‘statistically significant.’
Consumer sentiment fell to its lowest level in six months in May as Americans turned sour on inflation, interest rates and the labor market.
The preliminary reading of the University of Michigan’s consumer sentiment index came in at 67.4, a 14% drop from a year ago. That compares to 77.2 in April and forecasts for a slight dip.
“This month’s trend in sentiment is characterized by a broad consensus across consumers, with decreases across age, income, and education groups,” said Joanne Hsu, survey director.
“While consumers had been reserving judgment for the past few months, they now perceive negative developments on a number of dimensions,” Hsu said. “They expressed worries that inflation, unemployment and interest rates may all be moving in an unfavorable direction in the year ahead.”
