Consumer Sentiment Index Strong Despite Tariff Concerns

May's preliminary spike to 102.4 for the consumer sentiment index couldn't hold, revised down at month end to 100 and indicating a roughly 97.5 pace over the last two week's of the month. This index ended April at 97.2.

The biggest strength in May and perhaps the biggest surprise given the rise in tariff concerns is a sharp 6.1 point jump in expectations to 93.5. Yet building confidence isn't appearing in the assessment of current conditions which edged 2.3 points lower in the month to 110.0.

The strongest tariff indication is a rise in inflation expectations, up a sharp and noticeable 3 tenths for both the year-ahead and 5-year outlooks which are at 2.8 and 2.6 percent respectively.

The consumer confidence index released on Tuesday this week posted a sharp gain and though the final of 100.0 in this report is the best showing since September, the fall-off at month-end isn't pointing to building spirits for June.