US consumer sentiment drops to 6-month low on inflation, unemployment fears

WASHINGTON -- U.S. user sentiment fell sharply successful May to the lowest level successful six months arsenic Americans cited stubbornly precocious ostentation and involvement rates, arsenic good arsenic fears that unemployment could rise.

The University of Michigan’s user sentiment index, released Friday successful a preliminary version, dropped to 67.4 this period from a last speechmaking of 77.2 successful April. That is inactive astir 14% higher than a twelvemonth ago. Consumers' outlook has mostly been gloomy since the pandemic and peculiarly aft ostentation archetypal spiked successful 2021.

Consumer terms increases person been stuck astatine an elevated level this year, aft a crisp driblet past twelvemonth from a highest of 9.1% successful June 2022 to 3% a twelvemonth later. In March, prices roseate 3.5% compared with a twelvemonth ago, up from 3.2% successful the erstwhile month. Federal Reserve officials person underscored this period that they volition apt support their benchmark involvement complaint astatine a 23-year precocious for arsenic agelong arsenic needed to get ostentation backmost to their 2% target.