Consumer Sentiment in U.S. Falls for Fifth Straight Month
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What are the latest trends in U.S. consumer sentiment?
The totality of these cuts is going to mean that there's more than just the research that has to be hit because a lot of the infrastructure for this research still exists and needs to be funded. And how a tentative deal with the Justice Department could spare Boeing from a guilty plea over 737 MAX charges. It's Friday, May 16th. I'm Pierre Bien-Aimé for The Wall Street Journal, filling in for Alex Osola. This is the PM edition of What's News, the top headlines and business stories that moved the world today. Consumer sentiment in the U.S. has fallen to the second lowest number on record. The University of Michigan said its preliminary index of consumer sentiment for May fell to 50.8, a roughly 3 percent drop from April. American households felt worse about the economy, with sweeping tariffs raising the prospect of higher prices. Tariffs were spontaneously mentioned by nearly three-quarters of consumers, up from almost 60 percent in April.
Respondents said they expect prices to surge 7.3% over the next year, compared with expectations in April for a 6.5% increase. The survey also noted that longer-run inflation expectations rose too, reflecting an especially big monthly jump among Republicans. Wall Street Journal economics reporter Zhao Deng. It appears that American households are worried about inflation caused by tariffs. And this was actually a surprise to economists because the survey was taken during a period when the White House rolled back several tariffs, including the extremely high ones on China. The closing of the survey came two days after the China tariffs were decreased. So it could have been that respondents didn't really get a chance to reflect that change. And so while it's a disappointing report, many economists are holding out to see what the final reading for sentiment in May will look like. Respondents will continue to weigh some of the back and forth tariff announcements. And then also we had Walmart announcing just this week
that it's going to raise prices on its products this month and in early summer. That's another factor that consumers are going to be thinking about and that could push down sentiment in the final read for May. Major U.S. indexes rose today, led by the Dow, which added 332 points, or 0.8%. The S&P rose 0.7%, and the Nasdaq Composite advanced 0.5%. And for the week, the S&P 500 finished up 5.3%, the Nasdaq Composite rose 7.2%, while the Dow gained 3.4%. Charter Communications has reached a deal to buy Cox Communications for $21.9 billion. The combined company will change its name to Cox Communications. The merger will bring together two of the biggest broadband and cable operators in the U.S. at a time when cable giants are being squeezed from all sides, given tough competition from wireless carriers, frozen government subsidies for a Biden-era broadband construction program, and the decline of cable TV. And Boeing won't be prosecuted over violating an earlier criminal settlement.
A tentative deal with President Trump's Justice Department would allow the aerospace company to avoid being labeled a felon. According to people familiar with the matter, Boeing would receive a non-prosecution agreement instead of having to plead guilty, which it had agreed to do toward the end of the Biden administration.
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Chapters
8 chapters
1
What are the latest trends in U.S. consumer sentiment?
0:44–11:03
2
How are funding cuts impacting universities?
11:03
3
What role do tariffs play in consumer expectations?
2:53–6:46
4
How is Boeing avoiding prosecution?
6:46–11:09
5
What are the effects of President Trump's policies on higher education?
11:09
6
How are inflation expectations changing among consumers?
2:02–6:05
7
What are the implications of the Dow's performance?
6:05–7:22
8
What is the significance of the tentative deal with the Justice Department?
7:22–12:54
Speakers
1 identifiedMore from WSJ What’s News
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