Consumer sentiment in the U.S. unexpectedly saw a modest deterioration in the month of May, according to revised data released by the University of Michigan on Friday.
The report said the consumer sentiment index for May was downwardly revised to 98.0 from the preliminary reading of 98.8.
Economists had expected the consumer sentiment index to be unrevised at 98.8, which would have been unchanged from the final April reading.
Richard Curtin, the survey’s chief economist, noted the consumer sentiment index has meandered in a tight eight-point range from 93.4 to 101.4 since President Donald Trump’s election.
“Consumers have remained focused on expected gains in jobs and incomes as well as anticipated increases in interest rates and inflation during the year ahead,” Curtin said.
“As past expansions have shown, rising interest rates do not suppress spending gains as long as they are accompanied by more substantial increases in incomes,” he added. “The May survey, however, found that consumers anticipated smaller income gains than a month or year ago.”
The report said the current economic conditions index fell to 111.8 in May from 114.9 in April, while the index of consumer expectations inched up to 89.1 from 88.4.
On the inflation front, one-year inflation expectations ticked up to 2.8 percent in May from 2.7 percent in April, while five-year inflation expectations held at 2.5 percent.