The most important segment of the UMich sentiment survey continues to be inflation expectations, and after the preliminary data showed medium-term expectations rising significantly, the final print for May was expected to drop modestly from 3.2% to 3.1% (while the rebound in short-term inflation expectations was expected to hold). Both inflation expectations dropped from the flash print, from 4.5% to 4.2% for 1Y and from 3.2% to 3.1% for 5-10Y. However, 5-10Y inflation expectations remain at their highs of the last 12 years. The headline sentiment print was better than expected but still lower from April. Consumer ... (full story)