Consumer confidence is on the rise, reports the Conference Board. Its Consumer Confidence Index, which declined in April, showed a moderate increase in May, rising from 94.3 to 95.4.
“Consumer confidence improved modestly in May, after declining sharply in April,” says Lynn Franco, director of economic indicators at The Conference Board. “After a three-month slide, the Present Situation Index increased, propelled by a more positive assessment of the labor market. Expectations, however, were relatively flat following a steep decline in April. While current conditions in the second quarter appear to be improving, consumers still remain cautious about the short-term outlook.”
The Conference Board reports that consumers’ assessment of current-day conditions improved in May. While those reporting business conditions as “good” slipped from 25.5 percent to 25.2 percent, those saying that businesses conditions were “bad” also declined, from 19.2 percent to 17.4 percent. More mixed were consumers’ perspectives on the job market. Those describing jobs as “plentiful” climbed from 19 percent to 20.7 percent, while the number of consumers reporting them as “hard to get” also rose, from 25.9 percent to 27.3 percent.
Short-term optimism has softened. The percentage of consumers forecasting worsening business conditions in six months has increased from 9.1 percent to 10.8, with those expecting improving business conditions showing a modest rise of 15.4 percent to 15.6 percent. The Conference Board found a more positive outlook for the labor market. Consumers anticipating more jobs in six month grew from 13.8 percent to 14.6 percent, while those expecting fewer jobs diminished from 16.4 percent to 15.5 percent. Between April and May, the percentage of consumers expecting rising incomes is flat at 17.4 percent, and the proportion expecting declines grew slightly from 10.8 percent to 11.1 percent.
The monthly Consumer Confidence Survey®, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a global provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was May 15.
