by Bill McBride on 5/27/2016 10:05:00 AM
Friday, May 27, 2016
Click on graph for larger image.
The University of Michigan consumer sentiment index for May was at 94.7, down from the preliminary reading of 95.8, and up from 89.0 in April:
"Consumers were a bit less optimistic in late May than earlier in the month, but sentiment was still substantially higher than last month. Indeed, there have only been four prior months since the January 2007 peak in which the Sentiment Index was higher than in May 2016, all recorded at the start of 2015. Despite the meager GDP growth as well as a higher inflation rate, consumers became more optimistic about their financial prospects and anticipated a somewhat lower inflation rate in the years ahead. Positive views toward vehicle and home sales also posted gains in May largely due to low interest rates. The biggest uncertainty consumers see on the horizon is not whether the Fed will hike interest rates in the next few months, but the outlook for future government economic policies under a new president. "
Posted by Bill McBride on 5/27/2016 10:05:00 AM