Consumer Sentiment in May drops M/M, below expectations

• University of Michigan May Consumer Sentiment:  82.8 vs. 90.4 expected and 88.3 prior; Y/Y it indicates a 14.5% change.
• The tumble is due to higher inflation--the highest expected year-ahead inflation rate as well as the highest long term inflation rate in the past decade.
• Current Economic Conditions: 90.8 vs. 99.6 forecast and 97.2 prior.
• Index of Consumer Expectations: 77.6 vs. 85 estimated and 82.7 prior; Y/Y the growth stands at 17.8%.
• Real income expectations were the weakest in five years.
• The average of net price mentions for buying conditions for homes, vehicles, and household durables were more negative than any time since the end of the last inflationary era in 1980.
• Consumers anticipate a booming economy over the next year or so, including rapid job gains as well as increases in the inflation rate and interest rates.