U.S. University of Michigan consumer sentiment index rises unexpectedly in May

The preliminary U.S. Michigan consumer sentiment index, published by the University of Michigan Survey Research, rose 2.6 percent in May. Today’s data is better than expectations of a fall of 5.3 percent. The index had fallen 27 percent from its elevated level in February, but it is still above readings seen in the early years of the latest expansion and above most readings in the financial crisis.

Delving into details, the current conditions index rose 11.7 percent in spite of the dismal economic setting. However, the expectations component dropped in the month by 3.4 percent. The expectations component had been performing better than the current conditions component, but they have now recorded similar-sized falls from pre-virus readings, noted Daiwa Capital Market Research in a report.