Michigan Index Drops, But Rises From Preliminary Level
he University of Michigan's final consumer sentiment index for May fell to 86.9, the fourth straight drop and the lowest level since September 2003, though it rose from a preliminary reading two weeks ago.
The index rose from a preliminary reading of 85.3 issued May 13 and was down from 87.7 in April. The final level was above the median 86 level analysts had projected, Bloomberg reported.
Near-record gasoline prices and talk of a housing “bubble” might have contributed to the lower reading, Bloomberg reported.
The university's index of current conditions, which reflects Americans' perceptions of their financial situation and whether it's a good time to make big purchases, rose to 104.9 in May from 104.4 in April.
The index is based on a phone survey of about 500 households.
