UPDATE 1-US sentiment, inflation expectations rise in May

NEW YORK, May 28 (BestGrowthStock) – U.S. consumer sentiment rose a
bit in May from April but stayed roughly unchanged from levels
reported since February, while the one-year inflation
expectations climbed to the highest since October 2008, a
survey showed on Friday.

The final May reading on the overall index of consumer
sentiment was 73.6, up from April’s reading of 72.2 and up
slightly from the preliminary May reading of 73.3, according to
the Thomson Reuters/University of Michigan’s Surveys of
Consumers report.

Analysts polled by Reuters had predicted a final sentiment
reading of 73.3 for May. The sentiment readings for February
and March were also at 73.6.

The one-year inflation expectation index rose to 3.2
percent in May — the highest level since October 2008 when it
was 3.9 percent — from 2.9 percent in April. The
five-to-10-year inflation measure rose to 2.9 percent from 2.7

“The data represents troublesome increases in inflation
expectations, especially given the recent declines in gas
prices,” Richard Curtin, director of the surveys, said in a

Consumer sentiment is seen as a proxy for consumer spending
that fuels 70 percent of the U.S. economy.

The surveys’ gauge of current economic conditions was at
81.0 at the end of May, the same reading as April. The May
reading was slightly below 81.1 forecast by analysts.

The barometer of consumer expectations rose in May. It came
in at 68.8 versus 66.5 in April. It was slightly above the 68.0
level predicted by analysts.

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

Investing Advice
(Reporting by Caroline Valetkevitch; Editing by Theodore

UPDATE 1-US sentiment, inflation expectations rise in May