US consumer sentiment close to record low on inflation

U.S. consumer sentiment unexpectedly fell to the second-lowest level on record and inflation expectations climbed to multi-decade highs amid growing concerns about tariffs.

The preliminary May sentiment index declined to 50.8 from 52.2 a month earlier, according to the data released by the University of Michigan on Friday. That is the second-lowest reading on record, behind June 2022.

The consumer sentiment has edged down for a fifth straight month as people increasingly worry about the inflation.

The year-ahead inflation expectations surged from 6.5 percent last month to 7.3 percent this month, the highest reading since 1981.

Long-run inflation expectations lifted from 4.4 percent in April to 4.6 percent in May, the highest since 1991.

Nearly three-fourths of respondents spontaneously mentioned tariffs, up from near 60 percent in April, indicating trade policy continues to dominate consumers' views of the economy. The topic crosses partisan lines, including a notable share of Republicans bringing it up.

The survey was conducted between April 22 and May 13, a period that ended just after the U.S. and China agreed to temporarily reduce tariffs on each other while they negotiate a trade deal.

However, even considering the suspension of tariffs, the U.S. current actual tariff rates remain at their highest levels in decades.

A final consumer sentiment index for the month is slated to be released on May 30.

US consumer sentiment close to record low on inflation

US consumer sentiment close to record low on inflation

US consumer sentiment close to record low on inflation

China's experience in eradicating poverty offers valuable lessons for the rest of the world, said Kishore Mahbubani, former permanent representative of Singapore to the United Nations, in an interview aired Friday.

Mahbubani highlighted the historic significance of China lifting hundreds of millions of people out of poverty, describing it as a powerful example of effective governance, in an exclusive interview with China Central Television (CCTV) in Shanghai.

"So, for a country like China to lift 800 million people out of poverty, the sense of personal liberation that people get when they escape poverty is so powerful. I experienced it, I came out of poverty. I can understand how these 800 million people feel. And so the sense of personal liberation is enormous. It takes an incredible amount of good governance to eradicate poverty. And so clearly, China has done some things exceptionally right to be able to rescue so many people from poverty," he said.

He also noted that China's success has reflected governance capacity that merits serious study.

"And if we can move into a world 10 to 20 years from now, where every country in the world replicates what China has done and eradicates poverty, then we would have improved the human condition dramatically. And that's why China's governance needs to be studied carefully by all the countries in the world," said Mahbubani.

China's poverty alleviation experience worth global study: former Singaporean diplomat