The Conference Board’s Consumer Confidence index disappointedly slipped lower in May from a revised lower 117.5 to 117.2 (well below the 118.8 exp), still well below the pre-COVID levels of exuberance.
The driver is clear as ‘current conditions’ surge from 131.9 to 144.3, ‘hope’ for the future rolled over significantly from 107.9 to 99.1.
“Consumers’ assessment of present-day conditions improved, suggesting economic growth remains robust” in the second quarter, said Lynn Franco, senior director of economic indicators at the Conference Board, in a statement.
“However, consumers’ short-term optimism retreated, prompted by expectations of decelerating growth and softening labor market conditions in the months ahead.”
Plans to buy cars, homes, and major appliances all tumbled in May.