compared with the beginning of the monthbumperpoolpokertableU.S. consumers 'inflation expectations fell in the second half of MaybumperpoolpokertableHowever, high prices are still suppressing consumer confidence.
Data released Friday by the University of Michigan showed consumers expect prices to rise by 3.3 percent over the next year.bumperpoolpokertable.3%, down from 3.3% expected earlier this monthbumperpoolpokertable.5%。Their forecast for a price increase of 3% over the next 5-10 years is also lower than earlier this month and in line with April's expectations.
The improvement in inflation expectations may partly reflect the steady decline in gasoline prices this month.
Although the final value of the University of Michigan's consumer confidence index in May improved from the initial value, it still fell significantly 8.1 points from April and fell to a six-month low of 69.1.
The median forecast of economists surveyed was that the index would rise slightly from the initial value of 67.4.
"While consumers recognize that inflation has dropped significantly since 2022, a significant number of consumers still complain about the burden high prices place on their lives," Joanne Hsu, who led the survey, said in a statement.
In addition to concerns about the cost of living caused by high prices and borrowing costs, respondents in the survey have also become increasingly anxious about the labor market. They expect unemployment to rise and income growth to slow.
About four in ten respondents said high prices have affected living standards. Consumers also believe the possibility of the Federal Reserve cutting interest rates in the coming year is reduced. Only a quarter now expect to cut interest rates, compared with 37% in January.
The current condition indicator fell to 69.6 in May from 79 in the previous month. The expected indicator dropped from 76 to 68.8.
A measure of durable goods purchasing fell to a one-year low, and consumers 'view of current financial conditions was the worst in five months.