SMM News: the University of Michigan consumer confidence index in May initial 102.4, hit a 15-year high, expected 97.2, the previous value of 97.2.
The data also show that, reflecting consumers' assessment of their financial situation, the initial value of the consumer status index in May was 112.4, with an expected value of 112.2 and a previous value of 112.3.
The initial consumer expectation index for May, which reflects consumers' assessment of the future year, is 96, 86.8, with a previous value of 87.4.
(image from financial blog ZeroHedge)
Consumers are optimistic about the future. In May, 62% of consumers expected the economy to perform well in the coming year. The proportion is the highest since 2004.
The proportion of respondents who expect the economy to fall into recession within five years fell to 36%, the lowest since 2004.
Inflation expectations have also risen. The initial five-year inflation forecast at the University of Michigan in May was 2.6, compared with a previous value of 2.3. The initial one-year inflation forecast at the University of Michigan in May was 2.8, compared with a previous value of 2.5.