HVAC buying indicator slips in May, hits 12-month low

The share of U.S. consumers who felt it was a good time to buy large household durables — an indicator of HVAC purchasing intent — fell in May compared to the previous month for the first time this year, new data shows. 

What’s happening: In the University of Michigan’s popular monthly consumer survey, when asked whether now is a good or bad time to buy ‘major household items,’ 27 percent of respondents across all ages and income levels said it was a good time, down from 32 percent in each month from January through April and marking the lowest reading of the past 12 months. 

• Meanwhile, the share of respondents who felt it was a bad time to buy during the month ticked up to 69 percent, the highest reading this year and matching December 2025’s level. The remaining four percent of consumers said they were uncertain. 

What they’re saying: The most selected reason among those who felt it was a bad time to buy in May was “Prices are high,” according to the university, while the top reason among those who said it was a good time was “Prices won’t come down; are going higher.”

The big picture: The survey’s headline index, which measures broader consumer sentiment, in early June rose slightly from May, driven by easing gasoline prices, but remains roughly 19 percent below a year ago, according to preliminary data released on June 12. 

• “Even with June’s early gains… views of the economy are still relatively dour,” said Joanne Hsu, the university’s survey director. “[Consumers] feel burdened by the recent escalation in inflation and worry that higher inflation could remain stubborn going forward, particularly in the short run.”

Looking ahead: The University of Michigan will release a final June consumer sentiment reading this Friday, June 26.