Jarrell Dillard of Bloomberg reports that U.S. consumer sentiment slumped to a six-month low as inflation expectations rose. He writes:
US consumer sentiment declined in early May to a six-month low as short-term inflation expectations and concerns about the job market picked up.
The sentiment index slid to 67.4 in May from 77.2, according to the preliminary reading from the University of Michigan. The figure was weaker than all forecasts in a Bloomberg survey of economists.
Consumers expect prices will climb at an annual rate of 3.5% over the next year, the highest in six months and up from the 3.2% expected in April, data Friday showed. They see costs rising 3.1% over the next five to 10 years, up slightly from a month earlier. […]
Confidence deteriorated this month among Democrats, Republicans and independent voters. The latest figures underscore the hurdle President Joe Biden faces in convincing Americans that his policies have helped the economy.
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