US UoM Consumer Sentiment Index is seen at 50.8 in May

• Consumer confidence in the US declined in early May.
• One-year inflation expectation edged higher to 7.3%.

US consumer sentiment weakened in early May, according to the University of Michigan’s preliminary survey. The Consumer Sentiment Index fell to 50.8 from 52.2 in April, undershooting market expectations and markin a decline in household confidence.

The drop was broad-based. The gauge of Current Conditions eased to 57.6 from 59.8, while the Consumer Expectations component fell from 47.3 to 46.5, pointing to growing concern about the economic outlook.

Inflation expectations, meanwhile, moved higher. The one-year forecast rose to 7.3% from 6.5%, while the five-year outlook increased to 4.6% from 4.4%, suggesting consumers are growing more wary of price pressures.

Market reaction

The Greenback showed little immediate reaction to the data. The US Dollar Index (DXY) keeps hovereing around the 100.80 zone, navigating a tight range and advancing marginally.