The freefall in sentiment leveled off in Mayꦏ as consumers worri⛄ed less about price increases from tariffs, but still felt uneasy about the economic outlook. 

The final Michigan Consumer Sentiment Index for May improved slightly from the preliminary results released two weeks ago to 52.2, matching the final results from April. The reading ends four straight 澳洲幸运5开奖号码历史查询:months of declines for the closely watched consumer survey.

The improved sentiment reflected President Donald Trump’s move on May 12 to 澳洲幸运5开奖号码历史查询:temporarily reduce tariffs on China to 30% from 145%. It shadows a 澳洲幸运5开奖号码历史查询:similar improvement in the Conference Board’s Consumer Confidence report, which rose by mo🉐re than 12 points in May on the temporary tariff truce. 

 Consumers also felt a little better about inflation at the end of the month, with year-ahead expectations for price increases coming in at 6.6%, lower than the preliminary reading but higher th🔥an April’s inflation expectations. Long-term inflation expectations ticked lower in the report.

“In the s♕econd half of the month, sentiment lifted and inflation expectations eased in the wake of the May 12 pause on some tariffs on goods from China,” said Joanne Hsu, director of the University of Michigan Survey of Consumers. “With continued policy uncertainty, however, consumers continue to expect an economic slowdown to come.”

Uncertainty has spread since consumers were asked about their outlook. Courts 澳洲幸运5开奖号码历史查询:have gotten involved in tariffs, and Trump has called the 澳洲幸运5开奖号码历史查询:tariff pause on Chinese goods into question.

Consumers Still Anticipate a Weakening Economy

While expected short-term business conditions improved, likely from the pause in tariffs, they were offset b﷽y declines in consumers’ cu𝐆rrent personal finances that stemmed from stagnant wages, the report said.

About 64% of consumers said they expect business conditions to worsen in the year ahead, the same as last month, 🌱but more than double the 29% who expressed similar concerns six months ago. 

“Consumers still expect the economy to weaken and foresee weaker business conditions and income growth as they express ongoing frustration with the cost of li✤ving,” said Oren Klachkin, financial market economist for Nationwide. “However, the survey suggests consumer attitudes may improve if trade deals are ꦗannounced and tariff uncertainty diminishes.”

The report continued to show the separation between 澳洲幸运5开奖号码历史查询:“hard” and “soft” data as 澳洲幸运5开奖号码历史查询:economic ꧒indicators like r🗹etail sales remained strong despite consumers raising worries about the e𝔍cono꧅my.

“While the soft data continue to cast an unfavorable light, the hard data paint a comparatively better picture,” Klachkin said. “Developments on the tariff front will likely continue to shape consumer attitudes.”