US consumer sentiment ticks up in May

Consumer sentiment in the US improved a touch in May from the month before, although not as much as initially estimated, according to final figures from the University of Michigan.

The index of consumer sentiment nudged up to 97.1 from 97.0 in April and 94.7 in May, but was below the flash reading of 97.7.

The current economic conditions index fell to 111.7 in May from 112.7 and was below the unchanged reading from the initial estimate. It was also down compared to reading of 109.9 in May 2016.

Meanwhile, the index of consumer expectations increased to 87.7 in May from 87.0 in April, but was below the flash reading of 88.1 and May 2016's 84.9.

Surveys of Consumers chief economist, Richard Curtin, said: "Consumer sentiment has continued to move along the high plateau established following Trump's election. The final May figure was virtually unchanged from either earlier in May or the April reading. Indeed, the May figure was nearly identical with the December to May average of 97.3. Moreover, the partisan divide between Democrats and Republicans has also remained largely unchanged, with the first expecting a recession and the other more robust economic growth.

"How long will economic expectations be dominated by partisanship? Unlike differences in expectations across age, education, or income groups, which usually reflect actual differences in prospects for employment and income expectations, for example, partisanship is reflected by economic policy preferences. Since no major policies, such as healthcare, taxes, or infrastructure spending have yet been adopted, the partisan divide may reflect differences in policy preferences expressed as expected economic outcomes. Thus, the extreme partisan divide may persist until passage is deemed either inevitable or impossible."