Consumer sentiment in the US improved unexpectedly in early may amid widespread payments to mitigate the impact of the pandemic and discounts on expensive products, while pessimism has increased regarding the long-term prospects for incomes and the economy.
Preliminary sentiment index of Michigan University increased by 1.9 points — with an eight-year low — to 73.7. Experts expect the decline to 68.0 points.
The index of current conditions rose by 8.7 points to 83, while expectations index fell 2.4 points to 67.7 per, which is the lowest level since 2013.
«Confidence in early may increased as soon as the checks «aid» improved the finances of consumers, and widespread price discounting has increased their purchasing mood — the statement said Richard Certina, Director of research. — Despite these achievements, the personal financial Outlook for the coming year continued to deteriorate».
The report of the University of Michigan States that the improvement of the conditions of purchase of durable goods reflected large discounts, especially on cars and low interest rates. This helped to offset concerns about employment prospects and income. The indicator of sentiment regarding the current financial position of the respondents improved in comparison with the previous month due to higher incomes. But personal financial prospects for the coming year were the lowest in nearly six years.
Despite the fact that some prices plummeted, the price of basic necessities such as food, increased. The report showed that inflation expectations for the year ahead jumped to 3%, which is the highest rate in 2018.
Information-analytical Department TeleTrade