Consumer Sentiment Plunges to Six-Month Low on Inflation, Employment, and Interest Rate Fears

In a recent report released by the University of Michigan, consumer sentiment has plummeted to its lowest point in the past six months due to mounting concerns regarding inflation, employment, and interest rates. The preliminary reading for May’s overall consumer sentiment index came in at 67.4, significantly lower than the previous month’s final reading of 77.2. Economists had predicted a score of 76.0. According to surveys director Joanne Hsu, consumers have begun to exhibit pessimistic attitudes towards various aspects of their circumstances. This is evidenced by the fact that respondents expressed apprehension about the potential for inflation, joblessness, and rising interest rates over the coming year. Furthermore, the study’s one-year inflation expectation figure soared to 3.5 percent during May, up from 3.2 percent in April. Meanwhile, the five-year inflation projection also increased, reaching 3.1 percent from 3.0 percent in the preceding month. (Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)