Lead Economic Indicator Points to Increased Pessimism in Financial Situation for Americans

Pessimism among U.S. citizens about the state of the American economy increased in May as they remain concerned about elevated prices, high interest rates, and unemployment. The May “Index of Consumer Sentiment” by the University of Michigan showed that the economic indicator posted a 13 percent decline after three consecutive months of “very little change.” The 10-point decline in the index “is statistically significant and brings sentiment to its lowest reading in about six months.” There has been a “broad consensus across consumers” with people across age, education, and income groups feeling downbeat, according to the survey. “While consumers had been reserving judgment for the past few months, they now perceive negative developments on a number of dimensions. They expressed worries that inflation, unemployment, and interest rates may all be moving in an unfavorable direction in the year ahead.”...