From Yahoo Finance: 2025-05-30 13:05:00

Consumer sentiment in May remained steady as Americans became more optimistic about the US economy, following positive developments in President Trump’s trade policy. The University of Michigan consumer sentiment survey reported no change from the previous month, halting a four-month decline trend.

Although initial sentiment dipped in May, it rebounded later in the month due to a temporary pause on certain tariffs on Chinese goods. Expected business conditions improved after the trade policy announcement, boosting the economic outlook, according to Joanne Hsu, director of consumer surveys at the University of Michigan.

Long-run inflation expectations for the next five to ten years eased to 4.2% in May from 4.4% in April, the first decline since December 2024. Year-ahead inflation expectations held steady at 6.6%, signaling a break in the four-month trend of sharp increases.

Despite slight improvements in inflation expectations, consumers’ overall mood remained subdued due to declines in current personal finances from stagnant incomes in May. While the economic outlook was seen as no worse than the previous month, concerns about the future persisted among consumers.

Read more: S&P 500, Nasdaq, Dow drop as US-China tensions heat up while PCE inflation cools