ANN ARBOR, Mich. – The mood of U.S. consumers fell this month to its lowest level in 28 years, according to the latest data from the Reuters / University of Michigan Surveys of Consumers. The survey’s preliminary Consumer Sentiment Index fell 3.1 points to 59.5 points – the lowest since June 1980 – from April’s final score of 62.6. (READ MORE)
The decline was five times sharper than expected, based on the 62.0-point median estimate from a Reuters poll of 77 economists. (Their May estimates ranged from 57.5 points to 70.)
“Consumer confidence continued to slip in early May due to surging food and fuel prices,” the survey center said in a statement today. “Record numbers of consumers viewed the economy in recession and saw little hope of recovery anytime soon.”
The survey’s Expectations Index – an indicator of future consumer spending, based on consumer hopes for the economy over the next half-year – fell 1.6 points to 51.7, the lowest level since October 1990. That represented a 1.6-point decline from April’s final reading of 53.3 points.
Consumers’ price fears rose, with survey respondents predicting that inflation a year from now will soar to 5.2 percent, up from April’s 4.8-percent estimate.
The Reuters/University of Michigan Surveys of Consumers report is produced each month by the University of Michigan and distributed by Reuters. Additional information is available at www.sca.isr.umich.edu.
