The final reading for the May Reuters/Michigan index of consumer sentiment came in at 82.9 compared to a preliminary reading of 82.8 and the April final reading of 88.3. This was the lowest reading in three months.

Economists had forecast the index to be revised to 82.9.

According to the report, the index of consumer expectations fell 4.7 percent m-o-m to 78.8 from April’s final reading of 82.7, while the index of the current economic conditions plunged 8.0 percent m-o-m to 89.4 from April’s final reading of 97.2.

“It is hardly surprising that the resurgent strength of the economy produced more immediate gains in demand than supply, causing consumers to expect a surge in inflation,” noted Richard Curtin, Surveys of Consumers chief economist. “Record proportions of consumers reported higher prices across a wide range of discretionary purchases, including homes, vehicles, and household durables - the average change in May vastly exceeds all prior monthly changes.”