Right on the heels of stronger-than-expected housing data, the Street gets whammied with this: According to a report from the University of Michigan/Reuters, the U.S. consumer sentiment index in May fell to 59.5 from 62.6 in April. Economists were looking for a drop to 61.0.
Meanwhile, the expectations index in May fell to 51.7 from 53.3 in April, marking its lowest level since 1990, while the current conditions index dropped to 71.7 from 77.0 in April, marking its lowest level in 28 years.
Most economists attribute the recent drop in consumer sentiment to higher fuel and food prices - which many predict won't peak until late summer as well as declining home values.
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