US consumer sentiment waned in late May as Americans became increasingly pessimistic on the economic outlook, as trading conditions and profit payments raised spirits about the current situation.
(Washington) US consumer sentiment waned in late May as American economic outlooks also became increasingly pessimistic, as commercial reunification and profit payments lifted spirits about the current situation.
According to the data, the University of Michigan Final Price Index for the month fell to 72.3 from its initial reading of 73.7. Compared to 71.8 at the end of April. In Bloomberg’s survey of economists, the average estimate called for the May final index to reach 74.
The current conditions measure was 83 after the 82.3 initial reading – though still above April’s 74.3 – while the expectations index fell to 65.9, the lowest since 2013, from the initial 67.7 and the prior month’s 70.1.
Federal payments distributed under the Care Act (Coronavirus AIDS, Relief and Economic Security Act) are giving US consumer a setback – although the collision may be temporary as some incentives include a one-time check. And while the economic recession may be the worst end, Americans expect hardship for a long time, according to the report.
The survey found 50 percent of consumers expected the second-worst reading of “bad financial times” in the next five years since Director Donald Trump became president.
Personal income on record unprecedented payments for government social benefits increased by a record 10.5 percent in April, although consumer spending declined by a record 13.6 percent, Commerce Department data showed on Friday.
The Michigan survey was conducted from April 22 to May 26, and the preliminary results cutoff was May 13.