UoM Consumer Sentiment Index falls to 59.1 in May vs 64.0 expected

• UoM’s headline Consumer Sentiment Index dropped more than expected to 59.1 from 65.2. 
• FX markets did not react to the latest downbeat survey. 

The preliminary estimate of the University of Michigan’s (UoM) Consumer Sentiment Index for May fell to 59.1 versus an expected 64.0 fall from 65.2 in April, its lowest since August 2011, data released on Friday showed. UoM’s Consumer Expectations Index fell to 56.3 from 63.0 in April, larger than the expected drop to 62.5, while the Current Conditions Index fell to 63.6 from 69.4, versus an expected small rise to 70.5, its lowest reading since March 2009. 

UoM’s index of consumer inflation expectations showed that both one and five-year expectations remained steady at 5.4% and 3.0% respectively. 

Market Reaction

There was little to no reaction in the US dollar to the latest weaker-than-expected UoM survey, which likely reflects the worsening bite of US inflation on US consumer confidence.