US consumer sentiment unchanged in May

By Mucahithan Avcioglu

ISTANBUL (AA) - Consumer sentiment in the US remained unchanged in May compared to April, according to final results from the University of Michigan's consumer survey released Friday.

The index of consumer sentiment was revised upwards from the preliminary estimates of 50.8 points to 52.2.

"Sentiment had ebbed at the preliminary reading for May but turned a corner in the latter half of the month following the temporary pause on some tariffs on China goods," Surveys of Consumers Director Joanne Hsu said in a statement.

"Expected business conditions improved after mid-month, likely a consequence of the trade policy announcement."

However, these positive changes were offset by declines in personal finances stemming from stagnating incomes.

"Overall, consumers see the outlook for the economy as no worse than last month, but they remained quite worried about the future," she added.

Meanwhile, short-term inflation expectations inched up to 6.6% from the previous month's 6.5%.

"Inflation expectations evolved with major trade policy announcements this month. After the April 9 partial pause in tariff increases, inflation expectations ebbed but remained substantially elevated relative to March," Hsu said.

On the other hand, long-term inflation expectations fell to 4.2% in May from 4.4% in April, marking the first decline seen since December 2024.

"Given that consumers generally expect tariffs to pass through to consumer prices, it is no surprise that trade policy has influenced consumers’ views of the economy," Hsu said.

The tax and spending bill that is currently making its way through Congress, however, does not seem to be noteworthy to consumers, despite the numerous stories about it, she added.