US Consumer Sentiment At 4-Month High
The University of Michigan's consumer sentiment for the United States rose to 97.7 in May of 2017 from 97 in the previous month, according to preliminary estimates. Figures beat market forecasts of 97, boosted by an improvement in future expectations.
The barometer for current economic conditions was unchanged at 112.7 while the gauge of future expectations increased to 88.1 from 87.
Americans expect the inflation rate to be 2.6 percent next year (2.5 percent in April) and 2.3 percent in the next 5 years (2.4 percent in April).
The recent stability in consumer sentiment masks two important underlying shifts in the components as well as in the partisan divide. More favorable income gains and low inflation meant that consumers held the most favorable real income expectations in a dozen years. Buying plans, however, were mixed: household durables rose to a decade peak, while vehicle buying conditions slipped to a three year low. Home buying conditions were viewed less favorably, but were offset by the most favorable views about home selling in more than a decade. The partisan difference in the Expectations Index is still huge, but the gap between Democrats and Republicans narrowed slightly to 55 Index points from 65 three months ago, mainly due to Democrats expressing diminished fears of an immediate recession and lessened concerns about personal financial setbacks. Overall, personal consumption expenditures are expected to advance at about a 2.3% pace in 2017.
5/12/2017 2:11:39 PM