After April’s modest bounce (off decade lows), UMich Sentiment Survey was expected to fall back a little… instead it puked to new cycle lows… The headline sentiment index plunged to 59.1 from 65.2 in April, its lowest since 2011. A gauge of current conditions dropped to 63.6, the lowest in 13 years, while a measure of future expectations declined 6.2 points, erasing most of April’s gains.
These declines were broad based and visible across income, age, education, geography, and political affiliation–continuing the general downward trend in sentiment over the past year.
Consumers’ assessment of their current financial situation relative to a year ago is at its lowest reading since 2013, with 36% of consumers attributing their negative assessment to inflation.
“Inflation remains on the forefront of consumers’ minds,” Joanne Hsu, director of the survey, said in a statement.
“They mentioned inflation throughout