FX.co ★ US Consumer Sentiment Revised Higher

The University of Michigan's consumer sentiment index for the United States experienced a significant upward revision, reaching 52.2 in May 2025, compared to an initial estimate of 50.8. This adjustment aligns with April's figure and remains at the lowest levels since 2022. "While sentiment declined in the early readings for May, it showed improvement later in the month, largely due to the temporary suspension of certain tariffs on Chinese goods," explained Joanne Hsu, the Director of Surveys of Consumers. The index measuring consumer expectations increased to 47.9, surpassing both the preliminary figure of 46.5 and the previous reading of 47.3. Conversely, the index assessing current conditions fell to 58.9 from 59.8. On inflation matters, short-term inflation expectations remained relatively stable at 6.6%, a slight increase from 6.5% the previous month and notably below the initial estimate of 7.3%. This marks the smallest rise since the election, ending a four-month period of significant hikes in short-term expectations. Furthermore, long-term inflation expectations were adjusted downward to 4.2% from an initial 4.6%, below the 4.4% recorded in March.