US UoM Consumer Confidence Index fell further in May to 67.4

• Consumer confidence in the United States contracted by more than anticipated in May
• UoM survey showed one-year and five-year inflation expectations edged higher.

Consumer confidence in the US fell in May, with the University of Michigan's Consumer Sentiment Index plummeting to 67.4 in April from 77.2 in March. The reading also missed the market expectation of 76.

The Current Conditions Index declined to 68.8 from 79 in the previous month. More worrisome, 1-year inflation expectations were up to 3.5% vs 3.2% previously, while 5-year inflation expectations increased to 3.1% from 3.0%.

Market reaction

The US Dollar remains on the back foot after the report, showing no reaction to the news. Meanwhile, stock markets continue to pressure weekly highs, in line with the dominant optimism.