WASHINGTON, May 10 - U.S. consumer sentiment sagged to a six-month low in May as households worried about the higher cost of living and unemployment, but economists cautioned against drawing conclusions on the implications for the economic outlook.
"The resilience of consumer spending is dependent on the strong state of household balance sheets and the robust labor market. Only if the latter begins to falter would we expect to see more meaningful signs of economic weakness emerge." Economic growth slowed in the first quarter and employers hired the fewest number of workers in six months in April, recent data showed. University of Michigan Surveys of Consumers Director Joanne Hsu said consumers"expressed worries that inflation, unemployment and interest rates may all be moving in an unfavorable direction in the year ahead."
"It could also be due to other non-economic factors like the upcoming election, the brief Israel-Iran conflict or the spread of pro-Palestinian protests across college campuses. It might simply be noise rather than signal."The survey's reading of one-year inflation expectations rose to 3.5% in May from 3.2% in April, remaining above the 2.3%-3.0% range seen in the two years prior to the COVID-19 pandemic.
Inflation data next week is expected to show consumer prices moderating in April after three straight months of strong readings. Financial markets expect the U.S. central bank to start its easing cycle in September. But some economists are skeptical as inflation remains way above the Fed's 2% target.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »