US consumers are becoming increasingly worried about the trajectory of the US economy amid sticky inflation and the prospect of high interest rates for longer than initially hoped.
The latest University of Michigan consumer sentiment survey released Friday revealed a 13% decline in overall sentiment during the month of May. The index reading for the month came in at 67.4, its lowest level in six months, and well below economist expectations for a reading of 76.2.
Year-ahead inflation expectations hit 3.5% in Friday’s report, up from 3.2% in the month prior. Longer-run inflation expectations rose to 3.1%, up from 3% the month prior.
“While consumers had been reserving judgment for the past few months, they now perceive negative developments on a number of dimensions,” survey of consumers director Joanne Hsu said in a statement. “They expressed worries that inflation, unemployment and…
