Ann Arbor, MI, May 13, 2016—Consumer sentiment rose to 95.8 in May, a 7.6% increase, according to preliminary results from the University of Michigan Survey of Consumers.
April’s final reading was 89.0.
May 2016’s score represents a 5.6% increase over May 2015’s 90.7.
“Consumer sentiment rebounded in early May due to more frequent income gains, an improved jobs outlook, and the expectation of lower inflation and interest rates,” said Survey of Consumers chief economist, Richard Curtin. “The largest gains were recorded among lower income and younger households, although the gains were recorded among all income and age subgroups as well as across all regions. Nearly all of the gains were in the Expectations Index, which rose to its highest level in nearly a year. To be sure, the data still indicated the negative impact of uncertainty about future economic policies associated with the Presidential election, but its overall impact was overwhelmed by favorable economic developments. It is too early to judge the potential impact of the election on consumers’ expectations, and one month’s rebound in consumer confidence is insufficient to increase the current forecast for inflation-adjusted consumer expenditures from 2.5% during 2016.”