United States: Consumer confidence picks back up in May
May 27, 2014
The Conference Board consumer confidence index rose from 81.7 points in April (previously reported: 82.3 points) to 83.0 points in May. The reading, which was in line with market expectations, more than made up for last month’s loss and came close to reaching the highest point in over six years that was recorded in March.
May’s rise in confidence was driven by an improvement in consumers’ assessments of current economic conditions. Consumers' expectations regarding their personal finances over the next 12 months and their outlook for the future job market were also up.
The director of the Board explained that in May, “consumers assessed current conditions, in particular the labor market, more favorably. Expectations regarding the short-term outlook for the economy, jobs, and personal finances were also more upbeat. In fact, the percentage of consumers expecting their incomes to grow over the next six months is the highest since December 2007. Thus, despite last month’s decline, consumer confidence appears to be growing.”
Author: Carl Kelly, Economist