Keeping you up to date on the latest data releases.
- Consumer Sentiment
According to the latest release from the University of Michigan, its Index of Consumer Sentiment rebounded slightly in April, rising 2.1 index points to 69.6, following a 10-point dip down to 67.5 in March. The release noted that while the recent run-up in gas and food prices may slowdown consumption, “?consumers have adopted a more moderate reaction to rising gas prices than in 2008.” Much of April’s sentiment gain came from an increase in the consumer expectations component, which rose from 57.9 in March to 61.2, but is still well below its recent high of 71.6 in February. Interestingly, median year-ahead inflation expectations remained at 4.6 percent despite further increases in gasoline prices. More importantly, longer-term (5- to 10-year) median inflation expectations actually reversed March’s jump up to 3.2 percent, falling back down to 2.9 percent in April. This may suggest that households see recent energy and commodity price shocks as transitory relative price changes and not signals of higher inflation in the future.