US consumer confidence falls back in May, University of Michigan says

Consumer sentiment in the US shifted down a gear in May, according to the results of a closely followed survey.

The University of Michigan's consumer confidence index fell from a reading of 77.2 for April to 69.1 in May (Preliminary: 67.4).

Subindices tracking views on both current economic conditions as well as expectations dropped.

Joanne Hsu, the survey's director, noted Americans' worsening outlook for the jobs market looking one year ahead.

"These deteriorating expectations suggest that multiple factors pose downside risk for consumer spending;" she said.

"Still, sentiment remains almost 20% above a year ago and about 40% above the all-time historic low in June 2022, reflecting how much consumer views have improved as inflation eased."

A gauge of inflation expectations for one year ahead rose from 3.2% last month to 3.3%.

That was above the 2.3-3.0% range observed over the two years prior to the pandemic.

Views on inflation looking out to the long-run were steady for a second month at 3.0%.