U.S. consumer sentiment slightly worse than initially estimated in May

The final reading for the April Reuters/Michigan index of consumer sentiment came in at 72.3 compared to a preliminary reading of 73.7 and the April final reading of 71.8.

Economists had forecast the index to be revised up to 74.0.

According to the report, the index of the current economic conditions rose 10.8 percent m-o-m to 82.3 from April’s final reading of 74.3.

Meanwhile, the index of consumer expectations fell 6.0 percent m-o-m to 65.9 from April’s final reading of 70.1.

Richard Curtin, the Surveys of Consumers chief economist, noted that: “Consumer sentiment has remained largely unchanged during the past two months, with the final May estimate just a half index point above the April reading. The CARES relief checks and higher unemployment payments have helped to stem economic hardship, but those programs have not acted to stimulate discretionary spending due to uncertainty about the future course of the pandemic. It should not be surprising that a growing number of consumers expected the economy to improve from its recent standstill, or that the majority still thought conditions in the economy would remain unfavorable in the year ahead. ”