Consumer sentiment posts big miss in May

Peter Foley | Bloomberg | Getty Images Customers look at boots at a Macy's in New York.

Peter Foley | Bloomberg | Getty Images
Customers look at boots at a Macy’s in New York.

U.S. consumer sentiment dropped in May and missed expectations of an uptick, according to a report released on Friday.

The Thomson Reuters/University of Michigan’s preliminary May reading on the index was 88.6. It was down from the previous month’s reading of 95.9 and missed estimates of 96.

The decline in optimism about the economy was widespread among all age and income groups across the country.

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“Confidence fell in early May as consumers became increasingly convinced that there would be no quick and robust rebound following the dismal 1st quarter,” said Surveys of Consumers chief economist, Richard Curtin in a statement.

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“In contrast to last year’s rapid 2nd quarter revival, this year the economy faces reduced production and employment from lower oil prices, falling exports, and rising imports from a stronger dollar.”

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The gauge of current economic conditions fell to 99.8 from 107 in the previous month.

Consumer expectations index also fell to 81.5 from 88.8 in April.

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