3:00 PM · 12 May 2023

University of Michigan data much below expectations!

University of Michigan Sentiment: 57,7 Forecast: 63 Previous: 63,5

University of Michigan Expectations: 53,4 Forecast: 60,8 Previous: 60,2

University of Michigan Conditions: 64,5 Forecast: 67,5 Previous: 68,2

Inflation expectations 1-yr: 4,5% Forecast: 4,4% Previous: 4,6%

Inflation expectations 5-yr: 3,2% Forecast: 2,9% Previous: 3,0%

Long-term inflation expectations came in highest since 2011. Higher than expected inflation and lower consumer sentiments suggest neggative conditions for the stock market. University of Michigan reading much below expectations suggest that 'recession fears' may be justified. At the same time higher inflation expectations support further, restrictive Fed policy.

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