University of Michigan Consumer Confidence

Consumer confidence hovering above an eight month low in May. The University of Michigan final figure for May rose to 88.3 from 87.1 in April. In January it reached a recent high of 96.9.

Record gasoline prices and a softening housing market are weighing on the gains from record high nominal stock market valuations. The tight labor markets are keeping consumers confident about their incomes, and willing to continue spending as the current conditions index rose to 105.1, the highest level since February. But, the economic outlook slipped slightly as inflation expectations rose. Over the next year, consumers expect prices to rise +3.3%. Over the next five years, they expect prices to rise +3.1% annually, unchanged from April's expectation.