With the "mini war" still ongoing(albeit with a 'ceasefire' in place), expectations were for a continued slide (alreadyat record lows) in the American consumer's sentiment inpreliminary UMich datafor May released today.
And while the expectations were correct in direction, once again they underestimated just how bad things are as theheadline UMich print fell from 49.8 to 48.2 (a new record lowand below the 49.5 expectation).
Under the hood was more mixed withCurrent Conditions tumbling to 47.8 from 52.5 (new all-time low)while Expectations ticked up from 48.1 to 48.5 (better than expected).
Not a pretty picture with all three indices below 50.
The American Consumer has been less confident...
Overall, inflation expectations eased last month:Year-ahead inflation expectations softeneda touch from 4.7% last month to 4.5% this month, andLong-run inflation expectations inched downfrom 3.5% in April to 3.4% in May.
The drop in inflation expectations is odd since all the underlying cohorts saw expectations rise?
The decline in headline sentiment wasdriven by a surge in concerns about high prices both for personal finances as well as buying conditions for major purchases.
Republicans are losing faith...
UMich Survey Director Joanna Hsu notes that real income expectations continued a decline that began in March.
Source: ZeroHedge News
