Packaged ground beef is displayed at a Safeway store in San Anselmo, California on May 2, 2024.
Justin Sullivan | Getty Images
Consumer confidence fell as inflation expectations rose despite otherwise strong signals in the economy, according to a closely watched survey published on Friday.
The University of Michigan Survey of Consumers sentiment index for May recorded an initial reading of 67.4 for May, down from 77.2 in April and well below the Dow Jones consensus call for 76. This move represented a decline of 12 .7% in one month, but a year later. -annualized profit of 14.2%.
Along with the gloomy sentiment, the outlook for inflation over the one- to five-year period rose.
The one-year outlook rose 3.5%, up 0.3 percentage points from a month ago, to the highest level since November 2023.
Moreover, five-year expectations rose to 3.1%, an increase of just 0.1 percentage point, but a reversal of the trend of lower figures in recent months, also reaching a high in November.
Other indices in the survey also showed significant declines: the current conditions index fell to 68.8, down more than 10 points, while the expectations measure fell to 66.5, down 9.5 points. Both pointed to monthly declines of more than 12%, although these were higher than a year ago.
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