Consumer confidence improved slightly in May as coronavirus shutdowns began to ease and federal stimulus money made its way through the system, the University of Michigan reported Friday.
“Confidence inched upward in early May as the CARES relief checks improved consumers’ finances and widespread price discounting boosted their buying attitudes,” the report stated. “Despite these gains, personal financial prospects for the year ahead continued to weaken, falling to the lowest level in almost six years, with declines especially sharp among upper income households. Improved views on buying conditions were due to discounted prices and low interest rates, although their impact was partially offset by uncertainties about job and income prospects. Perhaps the most surprising finding concerned consumers’ inflation expectations. The median expected inflation rate during the year ahead rose sharply, with wide differences across age and income subgroups.”
