US Conference Board Consumer Confidence dropped from 103.7 to 102.3 in May, but beat expectation of 99.1. Present Situation Index fell from 151.8 to 148.6. Expectations Index dropped slightly from 71.7 to 71.5.
Ataman Ozyildirim, Senior Director, Economics at The Conference Board:
“Consumer confidence declined in May as consumers’ view of current conditions became somewhat less upbeat while their expectations remained gloomy.”
“Their assessment of current employment conditions saw the most significant deterioration, with the proportion of consumers reporting jobs are ‘plentiful’ falling 4 ppts from 47.5 percent in April to 43.5 percent in May.
“Consumers also became more downbeat about future business conditions, weighing on the expectations index. However, expectations for jobs and incomes over the next six months held relatively steady. ”
“Consumers’ inflation expectations remain elevated, but stable. Consumers in May expected inflation to average 6.1 percent over the next 12 months—essentially unchanged from 6.2 percent in April, though down substantially from the peak of 7.9 percent reached last year.”
