Michigan Consumer Sentiment Drops To 67.4 In May, Missing Analyst Expectations

On May 10, 2024, the University of Michigan released Michigan Consumer Sentiment report for May. The report indicated that Consumer Sentiment declined from 77.2 in April to 67.4 in May, compared to analyst consensus of 76.

Current Economic Conditions decreased from 79.0 in April to 68.8 in May, while Index of Consumer Expectations declined from 76.0 to 66.5.

The report indicated that the change in Consumer Sentiment was characterized by a broad consensus across consumers.

The University of Michigan noted that consumers “expressed worries that inflation, unemployment and interest rates may all be moving in an unfavorable direction in the year ahead”.

Year-ahead inflation expectations increased from 3.2% in April to 3.5% in May, while long-run inflation expectations increased from 3.0% to 3.1%.

U.S. Dollar Index settled near the 105.30 level after the release of the report. Treasury yields are moving higher, providing some support to the American currency.

Gold continued its attempts to settle above the $2370 level as traders reacted to the Consumer Sentiment report. Demand for gold is rising as traders bet that central banks will keep buying gold to boost its share in their reserves.

SP500  pulled back from session highs as traders reacted to the weaker-than-expected Consumer Sentiment data. Currently, SP500 is trying to settle below the 5225 level.

For a look at all of today’s economic events, check out our economic calendar.