US Economy News Today: Consumer Sentiment Drops to Lowest Reading in Five Months

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Updated May 24, 2024

02:53 PM EDT

A woman works on a jet engine. — Monty Rakusen/Getty Images

Welcome to Investopedia's economics live blog, where we explain what the day's news says about the state of the U.S. economy and how that's likely to affect your finances. Here we compile data releases, economic reports, quotes from expert sources and anything else that helps explain economic issues and why they matter to you.

Today, durable goods orders rose despite economists' expectations of a decrease and final estimates of consumer sentiment dropped to a five-month low but beat economists' forecasts.

Consumer Sentiment Drops in May on Labor, Inflation Worries

May 24, 2024 11:03 AM EDT

Consumer sentiment dipped 10.5% in May, dropping to its lowest reading in nearly five months, according to data released Friday.

The final May results of the Michigan Index of Consumer Sentiment showed a decline to 69.1, a more than eight-point drop from April. The drop comes after consumer sentiment has mostly moved sideways this year.

Data showed consumers are worried about work stability, as sentiment continued to be weighed down by the prospect of 澳洲幸运5开奖号码历史查询:continued high interest rates, said Survey Director Joanne Hsu.

“Consumers expressed particular concern over labor markets; they expect unemployment rates to rise and income growth to slow,” Hsu wrote. “These deteriorating expectations suggest that multiple factors pose downside risk for consumer sp🦂ending.”

ꦫD🌱espite the drop, the reading came in above economist forecasts. Plus, Hsu pointed out that sentiment is still 20% better than the same point last year, and well above the all-time low hit during the peak of inflationary pressure in June 2022.

The survey showed that 澳洲幸运5开奖号码历史查询:inflation expectations continued to move higher, with consumers expecting prices in the coming year to move higher by 3.3%, an increase in last month and higher than the pre-pandemic range. Fed officials follow 澳洲幸运5开奖号码历史查询:consumer inflation expectations as a gauge of the direction of price pressures.

-Terry Lane

Aircraft Sales Power Durable Goods Orders for Third Month In Surprise Increase

May 24, 2024 09:44 AM EDT

In another sign of a hot economy, new orders for durable goods increased 0.7%, up for the third consecutive month, surprising economists with an unexpected jump in aircraft orders.

Transportation equipment orders rose by $1.1 billion, a category that largely reflects aircraft sales, also moving higher for a third month. Taking out transportation sales, new 澳洲幸运5开奖号码历史查询:durable goods orders increased 0.4%, according to data from ꦜt༺he Census Bureau.

April’s increase in durable goods orders wasn’t as 澳洲幸运5开奖号码历史查询:strong as the jump in March, where the data was revised lower to 0.8%. However, the data came in far better than economists expected. Forecasters surveyed by the Wall Street Journal and Dow Jones Newswire expected a 0.5% decline in durable goods orders, which is used as a gauge of U.S. business investment.

“Core capital goods orders, a useful gauge of the underlying trend in capital spending, outpaced expectations, and more than reversed the prior month's decline,” wrote Bernard Yaros, lead U.S. economist at Oxford Economics.

The data also showed another jump in motor vehicles and parts, the sixth straight month moving higher, said Sal Guatieri, senior economist at BMO Capital Markets. He said the data potentially pointed to stronger-than-expected 澳洲幸运5开奖号码历史查询:gross domestic product (GDP) growth in the second quarter.

“Despite elevated borrowing costs and stricter loan standards, U.S. business inve💮stment could pick up in the second quarter,” Guatieri said. “However, the manufacturing sector, as a whole, is expected to remain in l𒁃ow gear until interest rates ease, the greenback weakens, and the global economy strengthens.”

-Terry Lane

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University of Michigan Survey of Consumers. “.”
Census Bureau. “.”
MarketWatch. “.”
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澳洲幸运5开奖号码历史查询

Consumer Sentiment Drops in May on Labor, Inflation Worries

Aircraft Sales Power Durable Goods Orders for Third Month In Surprise Increase

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