Keeping you up to date on the latest data releases.
Revised numbers show that the University of Michigan’s Index of Consumer Sentiment rose in May to 84.5 (preliminarily 83.7) from 76.4 in April. This marks the highest reading since July 2007. While the overall May gain continued to be paced by upper income households, confidence among middle- and lower-income households also began to improve in late May. According to the release, the data clearly suggest a faster pace of growth in consumer spending during the year ahead than was anticipated even one month ago. To be sure, however, consumers still expressed concerns with their financial prospects, especially about their prospects for income gains in the year ahead as well as over the longer term. The only revision to inflation expectations changed the longer-term (five- to ten-year) rate from 2.8 percent to 2.9 percent.