Consumer sentiment plunged by double-digits in May, dragged by the negative outlook on the economy and the inflationary uptick. QQQ is up 2.23%, while SPY is up 1.53%.
- The Index of Consumer Sentiment stood at 58.4 in May, reflecting a 10.4% decline from 65.2 in April and a 29.6% decline from 82.9 in May 2021.
- Survey of Consumers Director Joanne Hsu attributed the decline to negative views on current buying conditions for houses and durables and future outlook.
- Current Economic Conditions fell to 63.3 in May, indicating an 8.8% drop from 69.4 in April and a 29.2% drop from 89.4 in May 2021.
- The Index of Consumer Expectations stood at 55.2, 11.7% lower than 62.5 in April and 29.9% lower than 78.8 in May 2021.
- The majority of consumers project an improvement in their financial situation in the next five years, essentially unchanged this year.
- Persistently negative views are still likely to dominate personal factors in addressing future consumer behavior.