27 May, 2017
Consumer sentiment in the USA improved a touch in May from the month before, although not as much as initially estimated, according to final figures from the University of MI. It is up 2.5% from May 2016.
The report said the index of consumer expectations crept up 87.7 in May from 87.0 in April, but the current economic conditions index dipped to 111.7 from 112.7.
The University of Michigan's Consumer Sentiment Index hit 97.1 for its final reading in May. Also, the expectations index was revised down a bit to 87.1 from 88.1.
The Federal Reserve in March voted to raise short-term interest rates, and it is expected to push for additional rate increases if economic conditions continue to improve.
"Since no major policies, such as healthcare, taxes, or infrastructure spending have yet been adopted, the partisan divide may reflect differences in policy preferences expressed as expected economic outcomes", Richard Curtin, director of the University of MI consumer survey, said in a statement. "While extremes may well narrow, it is unlikely that the impact of partisanship on economic expectations will disappear". Since no major policies, such as healthcare, taxes, or infrastructure spending have yet been adopted, the partisan divide may reflect differences in policy preferences expressed as expected economic outcomes.
Inflation expectations, a measure closely watched by the Fed, remained largely steady.
Consumers were less optimistic than expected during the month of May, new figures showed on Friday.
