Consumer Sentiment Plunge Lowers Odds of U.S. Growth Rebound
by Sho ChandraMichelle Jamrisko
10:00 AM EDT May 15, 2015
A souring economy has curdled the American consumer’s mood.
The University of Michigan’s preliminary sentiment index for May plunged to 88.6, the lowest since October, from 95.9 the prior month. It was weaker than even the lowest estimate of 68 economists surveyed by Bloomberg. Another report showed factory production stalled in April.
News that the world’s largest economy sputtered last quarter, combined with uneven employment gains, shook households this month, raising concerns that spending will be slow to pick up. A strong dollar and weak oil prices also are holding back manufacturing, further denting the likelihood of a quick rebound in the rate of expansion.
“It’s not very encouraging for growth prospects,” said Millan Mulraine, deputy head of U.S. research & strategy at TD Securities USA in New York, who projected a drop in confidence. “The spate of numbers has been quite weak.”
clip-
The 7.3 point decrease this month in the Michigan index was the largest since December 2012, when households were rattled by government negotiations to avert the “fiscal cliff” of tax increases and spending cuts set to take effect the following month. The gauge has shown bigger declines on only 20 other occasions since the monthly surveys began in 1978.
more...
http://www.bloomberg.com/news/articles/2015-05-15/consumer-sentiment-in-u-s-plunged-in-may-by-most-in-two-years
= new reply since forum marked as read
