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US Consumer Confidence Rises in May, Yet Future Concerns Persist June 03, 2024 (0 comments)
New York, NY--The Conference Board reported an increase in the Consumer Confidence Index in May to 102.0 from 97.5 in April. Per a news release, the Present Situation Index, reflecting consumers' views on current business and labor market conditions, rose to 143.1 from 140.6.
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The Expectations Index, which gauges short-term outlooks on income, business, and labor market conditions, climbed to 74.6 from 68.8. Despite this increase, it has stayed below the 80-point mark for four months, suggesting potential economic downturn concerns.
"Confidence improved in May after three consecutive months of decline," said Dana M. Peterson, Chief Economist at The Conference Board, in the news release. "Consumers' assessment of current business conditions was slightly less positive than last month."
"However, the strong labor market continued to bolster consumers' overall assessment of the present situation," Peterson added in the release. "Views of current labor market conditions improved in May, as fewer respondents said jobs were 'hard to get,' which outweighed a slight decline in the number who said jobs were 'plentiful.'"
Consumers across all age groups reported higher confidence, particularly those earning over $100,000 annually. However, inflation concerns remain high, especially for food and groceries, with 12-month inflation expectations rising to 5.4% from 5.3% in April.
The report highlighted increasing concerns about consumer recession, with more anticipation of a recession within the next 12 months. In contrast, only 35% of CEOs expect a recession in the next 12 to 18 months. Despite these worries, 48.2% of consumers expect stock prices to rise in the coming year.
Purchasing plans showed mixed results. Home-buying plans remained at their lowest level since August 2012, while auto-buying plans increased slightly for the second month. Plans for big-ticket appliances also rose for the first time in several months, with renewed interest in smartphones.
Learn more in this news release by The Conference Board.