(Bloomberg) - US consumers’ longer-term inflation expectations ticked up in April while sentiment remained subdued.
Consumers surveyed by the University of Michigan expect inflation to average 3% over the next five to 10 years, up from 2.9% in March. Still, that’s just the first increase in five months.
Respondents expect prices will climb at an annual rate of 4.6% over the next year, up from the 3.6% pace expected in March, according to the final April reading released Friday.
The university’s sentiment index improved to 63.5, matching the preliminary April reading, from 62 last month.
“Despite the increasingly negative news on business conditions heard by consumers, their short and long-run economic outlook improved modestly,” Joanne Hsu, director of the survey, said in a statement.
“These improvements were balanced by worsening assessments of personal finances due to higher expenses, reflecting the ongoing pain stemming from continued high prices,” she said.
Consumers still see relative strength in the job market, though the share of respondents who expect unemployment to rise in the next year was the largest since December.
The current conditions gauge rose to 68.2 from 66.3 in March. A measure of expectations improved this month to 60.5 from 59.2.
By Augusta Saraiva
With assistance from Jordan Yadoo
