US consumer sentiment improves less than expected in May

Consumer sentiment in the US improved less than expected in May, according to the final reading from the University of Michigan.

The University of Michigan’s consumer sentiment index printed at 94.7, down from the initial estimate of 95.8 but above the April reading of 89.0 and the May 2015 reading of 90.7.

Meanwhile, the current economic conditions index rose to 109.9 in May from 106.7 in April and 100.8 in the same month last year.

The index of consumer expectations came in at 84.9, down from the flash estimate of 87.5 but higher than April’s 77.6 and last May’s 84.2.

Survey of Consumers chief economist Richard Curtin said: “Consumers were a bit less optimistic in late May than earlier in the month, but sentiment was still substantially higher than last month.

“The biggest uncertainty consumers see on the horizon is not whether the Fed will hike interest rates in the next few months, but the outlook for future government economic policies under a new president. This has increased their emphasis on maintaining precautionary savings, although the savings rate is not expected to increase much beyond its current level.”