Michigan Consumer Sentiment Drops To 69.1, Exceeding Analyst Estimates

On May 24, 2024, the University of Michigan released the final reading of Michigan Consumer Sentiment report for May. The report indicated that Consumer Sentiment declined from 77.2 in April to 69.1 in May, compared to analyst consensus of 67.5.

Current Economic Conditions declined from 79.0 in April to 69.6 in May, while Index of Consumer Expectations decreased from 76.0 to 68.8.

Year-ahead inflation expectations increased from 3.2% in April to 3.3% in May, which is above the 2.3 – 3.0% range seen in the two years prior to the pandemic.

Long-run inflation expectations remained unchanged at 3.0%. Long-term inflation expectations have been in the 2.9 – 3.1% range for 30 of the last 34 months.

The University of Michigan commented: “Consumers expressed particular concern over labor markets; they expect unemployment rates to rise and income growth to slow.”

The report noted that Consumer Sentiment remained almost 20% above the levels seen a year ago and about 40% above the all-time lows in June 2022.

U.S. Dollar Index tested session lows as traders reacted to the Consumer Sentiment report. Currently, U.S. Dollar Index is trying to settle below the 104.80 level.

Gold settled near the $2340 level as it attempts to rebound after yesterday’s sell-off. U.S. dollar’s pullback provides additional support to gold markets.

SP500 tests session highs as traders focus on the better-than-expected Consumer Sentiment data.

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