Michigan Consumer Sentiment Drops To 50.8, Missing Analyst Estimates

On May 16, 2025, the University of Michigan released Michigan Consumer Sentiment report for May. The report indicated that Michigan Consumer Sentiment declined from 52.2 in April to 50.8 in May, compared to analyst forecast of 53.4.

Current Economic Conditions decreased from 59.8 in April to 57.6 in May, while Index of Consumer Expectations declined from 47.3 to 46.5.

Year-ahead inflation expectations continued to rise at a robust pace, surging from 6.5% in April to 7.3% in May. Long-run inflation expectations increased from 4.4% to 4.6%.

The University of Michigan commented: “Many survey measures showed some signs of improvement following the temporary reduction of China tariffs, but these initial upticks were too small to alter the overall picture – consumers continue to express somber views about the economy.”

U.S. Dollar Index moved higher as traders reacted to Michigan Consumer Sentiment Report. Currently, U.S. Dollar Index is trying to settle above the 100.85 level.

Gold remained under pressure after the release of the report. Gold settled below the $3185 level as the pullback continued.

SP500 settled near the 5925 level as traders focused on the weaker-than-expected report. Rising inflation expectations may force the Fed to be more hawkish than previously expected, which is bearish for stocks.

For a look at all of today’s economic events, check out our economic calendar.