U.S. consumer sentiment rises in May, as forecast

NEW YORK, May 14 (BestGrowthStock) – U.S. consumer sentiment edged
up in May from April, in line with forecasts, while one-year
inflation expectations were at their highest since June 2009.

The majority of consumers expected interest rate increases
during the year ahead, the Thomson Reuters/University of
Michigan’s Surveys of Consumers report also showed on Friday.

The preliminary May reading on the overall index on
consumer sentiment was 73.3, up from April’s 72.2. Analysts
polled by Reuters had predicted a reading of 73.5 for May.

The one-year inflation expectation index rose to 3.1
percent in May the highest since June 2009, from 2.9 percent in
April, while the five-to-10-year inflation measure rose to 2.9
percent from 2.7 percent.

The sentiment reading, which is largely unchanged since
last September, when it came in at 73.5, is seen as a proxy for
consumer spending that fuels 70 percent of the U.S. economy.

“Consumers’ buying plans responded negatively to the
decline in available price discounts, although the overall
level of buying attitudes for household durables remains well
above the year-earlier readings,” Richard Curtin, director of
the surveys, said in a statement.

The surveys’ gauge of current economic conditions edged up
to 81.1 at the beginning of May from 81.0 in April. The May
reading was slightly below the 81.9 forecast by analysts.

The barometer of consumer expectations also rose in May. It
came in at 68.3 versus 66.5 in April. It was above the 67 level
predicted by analysts.

The index of consumers’ 12-month economic outlook rose to
84 in early May from 80 in April.

(Reporting by Caroline Valetkevitch; Editing by James

U.S. consumer sentiment rises in May, as forecast