Dados EUA: Consumers gloomier in early May

[notiCIas]

Consumers gloomier in early May

High gasoline prices, job market worries weigh on University of Michigan consumer sentiment index.

May 13, 2005: 10:11 AM EDT

NEW YORK (Reuters) - Consumers felt less upbeat in early May as persistently high gasoline prices and worries about the job market took their toll on confidence, a report said Friday.

The University of Michigan said its measure of consumer sentiment slipped to 85.3 so far this month from 87.7 in April, according to market sources who saw the subscription-only report.

Wall Street analysts had been predicting a slight gain to 88.0, partly because prices at the gasoline pump have come off their highs so far in May.


But that was not enough to soothe consumers' concerns about the future, with the survey's expectations component falling to 73.7 from 77.0. Ratings of current conditions also eased to 103.3 from 104.4.

Consumer spending accounts for two-thirds of overall U.S. economic activity, and a deterioration in confidence is seen as a possible precursor to softer growth.

However, the correlation between sentiment and spending has weakened in recent years. In April, for instance, retail sales jumped 1.4 percent despite sliding confidence.