United States: Consumer confidence moves further down in May
May 31, 2016
The Conference Board’s consumer confidence indicator fell from 94.7 in April to 92.6 in May, which marked a second consecutive decrease. May’s result undershot the 96.3 the markets had expected and took the index to its lowest level in six months, prompting uncertainty about whether the recent pickup in consumer spending will be sustained into the summer months. Despite the drop in May, the Conference Board’s consumer confidence index remains within its range from over the past year.
According to the Conference Board, “consumer confidence declined slightly in May, primarily due to consumers rating current conditions less favorably than in April.” Regarding expectations, the Board went on to say that they, “declined further, as consumers remain cautious about the outlook for business and labor market conditions. Thus, they continue to expect little change in economic activity in the months ahead.”
Author: Ricardo Aceves, Senior Economist