A measure of US consumer sentiment has unexpectedly fallen to its lowest level since November as more Americans expect inflation, unemployment and interest rates to become “unfavourable” in the year ahead.
The University of Michigan’s consumer sentiment index registered a preliminary reading of 67.4 in May, its lowest since November, falling far short of the 76 expected by economists and April’s reading of 77.2.
“While consumers had been reserving judgment for the past few months, they now perceive negative developments on a number of dimensions,” said Joanne Hsu, University of Michigan’s survey of consumers director.
Inflation expectations for the year ahead rose from 3.2 per cent last month to 3.5 per cent.
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