US consumer confidence increased in May.: US Consumer Confidence- May Increase Trend

1. US consumer sentiment increase
2. May consumer confidence report
3. Economic outlook US consumers

Consumer confidence ticked up in May, reaching 102.0 from 97.5 in April. The Present Situation Index increased to 143.1, while the Expectations Index rose to 74.6. Despite improvements, recession concerns linger as the Expectations Index remains below 80. Chief Economist Dana M. Peterson noted improvements in all age groups and income brackets, with inflation expectations rising to 5.4 percent. Concerns about recession and interest rates are on the rise, while purchasing plans for homes remain low. The Consumer Confidence Survey highlights consumer sentiment, with a focus on current and future financial situations. The Conference Board provides trusted insights for the future.

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The latest data on consumer confidence in the United States reveals an interesting trend. After three consecutive months of decline, confidence among consumers ticked up in May. However, despite this uptick, there remains a sense of anxiety about the future among consumers. Let’s delve into the details of the report to understand the dynamics at play.

According to the Consumer Confidence Index released by The Conference Board, consumer confidence rose to 102.0 in May from 97.5 in April. This increase is a positive sign, indicating a slight improvement in consumers’ outlook on the economy. The Present Situation Index, which measures consumers’ assessment of current business and labor market conditions, also saw an uptick to 143.1 in May from 140.6 in April.

On the other hand, the Expectations Index, which gauges consumers’ short-term outlook for income, business, and labor market conditions, rose to 74.6 in May from 68.8 in April. Despite this improvement, the index remains below 80 for the fourth consecutive month, signaling ongoing concerns about the future.

Dana M. Peterson, Chief Economist at The Conference Board, noted that the improvement in confidence was driven by a more positive view of the labor market. Fewer consumers reported jobs as “hard to get,” which contributed to the overall positive assessment of the present situation. Looking ahead, fewer consumers expect deterioration in future business conditions, job availability, and income, leading to an increase in the Expectations Index.

However, the report also highlighted some areas of concern. Consumers cited rising prices, especially for food and groceries, as a major factor impacting their view of the economy. Average 12-month inflation expectations also increased slightly, along with expectations of higher interest rates in the future. Additionally, consumers’ assessment of their family’s financial situation deteriorated slightly, indicating underlying worries about personal finances.

One notable finding from the survey was the resurgence in recession concerns among consumers. The Perceived Likelihood of a US Recession over the Next 12 Months rose for the second consecutive month, with more consumers expressing belief in the possibility of a recession. This contrasts with CEO assessments, where only 35 percent of CEOs anticipated a recession within the next 12 to 18 months.

On a positive note, consumers were upbeat about the stock market, with a significant percentage expecting stock prices to increase in the coming year. Purchasing plans for big-ticket items like homes, autos, and appliances also showed some improvement, indicating cautious optimism among consumers.

In conclusion, while the uptick in consumer confidence is a positive development, there are lingering concerns about the future economic outlook. Rising prices, inflation expectations, and recession fears are key factors influencing consumers’ sentiment. It will be crucial to monitor these trends in the coming months to gauge the overall health of the economy.

Source: The Conference Board – Consumer Confidence Survey

About The Conference Board: The Conference Board is a trusted think tank that provides insights for the future. Founded in 1916, it is a non-partisan, not-for-profit organization dedicated to delivering valuable insights for informed decision-making.

Remember to stay informed about the latest updates on consumer confidence by visiting The Conference Board website.