U.S. Consumer Sentiment Jumps to 15-Year High on Upbeat Outlook By Katia Dmitrieva May 17, 2019, 10:00 AM EDT SHARE THIS ARTICLE Share Tweet Post Email U.S. consumer sentiment jumped to the strongest level since 2004 on a surge in economic expectations following an unexpectedly strong report on first quarter growth. The University of Michigan's preliminary sentiment index rose to 102.4 in May, topping all estimates in a Bloomberg survey of economists who had projected the gauge would hold at 97.2. All of the gain was in the expectations index, which also climbed to a 15-year high, while the gauge of current conditions ticked up, the report Friday showed. Key Insights The more upbeat sentiment comes amid first-quarter economic growth that topped expectations at 3.2% and the lowest unemployment rate in 49 years. Still, a recent flare-up in trade tensions between China and the U.S. may weigh on future readings as price pressures hit consumers and weigh on the economic outlook. Consumers anticipate faster price gains, which may be welcomed by Federal Reserve policy makers who have been concerned that inflation is persistently below their target. Inflation expectations for the year ahead rose to 2.8%, while the inflation rate seen over the next five to 10 years increased to 2.6%. A report this week showed the Bloomberg Consumer Comfort Index edged up, while the Conference Board confidence measure is forecast to ease slightly this month. Get More A measure of buying conditions for household durable goods dropped to the lowest since August. That signals some headwinds for future retail sales and potentially factory activity, both of which weakened in April. The gauge of current personal finances improved while the index for expectations held steady. Interviews were conducted April 24-May 15. President Donald Trump renewed threats of tariffs on Chinese goods on May 5.
Trump will have to defend: tax cuts for the wealthy price hikes for the working class Increased illegal immigration Increased budget deficits Increased spending Political corruption Lower rates of healthcare coverage Inaction on the minimum wage Etc *Trump has not done one thing that benefitted the economy. He inherited a strong and growing economy. It has improved despite his policies, not because.
If you think Obama did such a great job then having his grandfather, Joe Biden, on the ballot will definitely work swimmingly well.
Guys, that stupid UoM study is like a single-blind study of DUH... Survey of about 500 consumers which asks respondents to rate the relative level of current and future economic conditions 500 people! That's it! In a country with about 230 million people who are over 17 YO, they ask 500 people questions that college grads cannot understand the context of, and the markets bias their outlook on this! I've seen the questions. They are not easy to grasp and put into context. Does anyone understand sampling and statistics? OMG. I hate how the world markets are affected by the ramblings of 500 random possible dumbfucks in the USA. Yikes!
But the margin for error is very high if only .0002 % of the available population is polled. Or whatever that number is.