Sunday, May 14, 2023 6:47 AM EDT
Consumer sentiment in the US deteriorated in early May with the University of Michigan's (UoM) Consumer Confidence Index falling to 57.7 (preliminary) from 63.5 in April. This reading came in below the market expectation of 63.
Freepik
“Consumer sentiment tumbled 9% amid renewed concerns about the trajectory of the economy, erasing over half of the gains achieved after the all-time historic low from last June,” the UoM noted in its report. “While current incoming macroeconomic data show no sign of recession, consumers’ worries about the economy escalated in May alongside the proliferation of negative news about the economy, including the debt crisis standoff.”
Inflation expectations for one year dropped from 4.6% to 4.5% in May. On the contrary, 5-year inflation expectations rose from 3.0% to 3.2%, the highest reading since 2011.
Market reaction
The US Dollar pulled back across the board after the report but remained in positive territory for the day. The DXY was up by 0.15%, trading at one-week highs.
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