US consumer sentiment hits five-month low

The reading came in below market expectations of 47.5, highlighting growing concerns among American consumers about the economic outlook. The current economic conditions index declined to 44.7, while the consumer expectations index rose to 47.3.

Inflation expectations continued to rise. Consumers' inflation expectations for the next 12 months increased from 4.6% to 4.7%, while long-term expectations climbed from 3.4% to 3.5%. Joanne Hsu, Director of the University of Michigan's Surveys of Consumers, said elevated prices and borrowing costs were weighing particularly heavily on confidence among lower-income consumers. The data are significant for the outlook for US consumer spending and the Federal Reserve's monetary policy.