U.S. Consumer Sentiment Improves More Than Expected In May

Consumer sentiment in the U.S. has seen a modest improvement in the month of May, according to a report released by the University of Michigan on Friday.

The report said the preliminary reading on the consumer sentiment index for May came in at 97.7 compared to the final April reading of 97.0. Economists had expected the index to inch up to 97.3.

The uptick by the headline index came amid an improvement in consumer expectations, as the index of consumer expectations rose to 88.1 in May from 87.0 in April.

Meanwhile, the University of Michigan said the current economic conditions index came in at 112.7 in May, unchanged from the previous month.

"Consumer sentiment remained on the high plateau established following Trump's election, with the early May figure nearly identical with the December to May average of 97.4," said Richard Curtin, the survey's chief economist.

He added, "The Trump bump was relatively small given that the Sentiment Index averaged 91.8 in the comparable six month period a year ago and 94.5 in the same period two years ago."

On the inflation front, one-year inflation expectations inched up to 2.6 percent in May from 2.5 percent in April, but five-year inflation expectations dipped to 2.3 percent from 2.4 percent.