The Digest will not be published on Monday, May 25th, in observance of Memorial Day.

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1. The University of Michigan consumer sentiment index was revised downward to a new record low.

• Even adjusted for the transition from phone-based survey to online survey, the series remains depressed.

• Both the current conditions index …

… and the expectations component fell to record lows.

2. Consumers’ median inflation expectations were revised higher.

3. The Conference Board’s Leading Economic Index remained weak.

• Consumer expectations were the largest detractor.

4. The New York Fed’s Reserve Demand Elasticity measure fell, suggesting reserves remain abundant.

5. The median age of a US home is a record 44 years, leading to vast and rapidly increasing maintenance and modernization costs.

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1. Retail sales in March surpassed expectations, with the ex-autos measure showing a particularly strong increase. The preliminary estimate for April suggests continued momentum.

• This chart shows the March month-over-month changes by category.

2. Producer prices continued to surge in April, signaling intensifying inflationary pressures within the production pipeline.

3. USD/CAD broke above its 200-day moving average.

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1. Retail sales fell much more than expected in April, exaggerated by a steep drop in motor fuel sales as consumers unwound previous panic-buying.

• Excluding fuel, core retail sales still fell.

2. Consumer confidence improved but remained depressed.

• Rising energy costs linked to the Iran conflict are disproportionately weighing on lower-income households, curbing spending plans and prompting them to draw down savings.

3. The public-sector net borrowing was higher than forecast, driven by higher welfare spending.

4. The FTSE 100 Index has gained for five consecutive days.

5. The 10-year gilt yield fell below its 50-day moving average.