Reuters
The numbers: The final reading for consumer sentiment fell slightly in May, but the index pointed to steady growth for the U.S. economy.
The sentiment index slipped to 98 points from 98.8 in April, the University of Michigan said. Economists polled by MarketWatch expected a reading of 98.9.
The index had hit a 14-year high in March.
What happened: Richard Curtin, chief economist of the survey, said Americans expect the jobs market to remain strong and incomes to rise. They also think inflation and interest rates are going up, though.
Notably, Americans found that discounts for new autos and other durable goods were at decade lows, another signal that inflation is rising because of strong demand for goods and services.
Big picture: Americans are pretty optimistic about the economy. Incomes are rising, job openings are at a record high and layoffs and unemployment have fallen to the lowest levels in decades.
Rising gas prices could pinch this summer, as would higher inflation, but the economy is still on track to set a record for the longest expansion ever.
Market reaction: The Dow Jones Industrial Average and S&P fell in Friday trades. The 10-year Treasury yield dropped several basis points to 2.92%.