WASHINGTON (MarketWatch) — Consumers grew more concerned this month about current and coming economic conditions, with a gauge of their sentiment dropping, according to data released Friday. The overall consumer-sentiment barometer fell to a final May reading of 81.9 from a final April level of 84.1, according to the University of Michigan and Thomson Reuters. Economists polled by MarketWatch had expected a final May reading of 82.5, compared with a preliminary monthly result of 81.8. For context, over the year leading up to the start of the recession, which began in December 2007, sentiment averaged 86.9. May’s reading pushes the sentiment gauge further from pre-recession levels. Traders watch sentiment levels to get a feeling for the direction of consumer spending. Elsewhere Friday, the government reported that consumer spending fell last month — the first decline in a year. A variety of factors are impacting consumers. Employers appear to be picking up hiring and laying off fewer employees, but workers are still concerned about their career prospects. Home prices are on the rise, but many households are wary of taking on too much debt, with Americans’ credit-card balances recently hitting the lowest tally in more than a decade. On a positive note, stocks traded higher this month, and gas prices declined a bit. Details of the UMich sentiment data show that a gauge of consumers’ views on current conditions dropped to 94.5 in May from 98.7 in April. Meanwhile, a barometer of their economic expectations declined to 73.7 from 74.7. Friday’s data contrast with a separate consumer reading, released earlier this week, showing that confidence rose in May. Even that barometer, though, still indicated that many consumers feel cautious about spending. More must-reads from MarketWatch: Is the S&P 500 overbought? 3 expensive stocks worth every penny Get pumped for a summer melt-up — followed by a ‘nasty correction’ Ruth Mantell is a MarketWatch reporter based in Washington. Follow her on Twitter @RuthMantell.

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