May consumer sentiment rises

NEW YORK (Reuters) - U.S. consumer sentiment rose in May from the previous month despite the impact of record high gasoline prices on consumers' budgets, according to a poll published on Friday.

The Reuters/University of Michigan Surveys of Consumers said its final May reading on consumer sentiment index rose to 88.3 from 87.1 at the end of April. The preliminary May reading, released in mid-May, was 88.7.

The median forecast on the overall sentiment reading among analysts polled by Reuters was 88.0.

The rise in May among upper-income households was mainly due to larger income gains as well as rising stock prices, Reuters/University of Michigan said in a statement.

The survey's gauge of current consumer conditions edged up to 105.1 in May from April's final reading of 104.6, while its final measure on consumer expectations was 77.6, a shade higher than 75.9 at the end of April.

"Lower income households complained that high gas prices had devastated their budgets, but even among those vulnerable consumers their complaints were less frequent than last May when the price of gas was 34 cents (a gallon) lower," Reuters/University of Michigan said.

One third of households with incomes below $50,000 said higher gasoline prices had devastated their budgets, but just one in six upper-income households made similar complaints, the survey said.

The survey's index of the economic outlook for the next 12 months jumped to 97 from 87, while the economic outlook for the next five years slipped to 89 in May from 90.

The survey's one-year inflation index held steady from late April at 3.3 percent, while its five-year inflation index was unchanged at 3.1 percent.

The Reuters/University of Michigan Surveys of Consumers, a monthly series of data on U.S. consumer sentiment, are produced by the University of Michigan in Ann Arbor, Michigan. From January 2007, Reuters has exclusive rights to distribute the data.