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Wednesday, November 20, 2019
HomeNewsEconomyConsumer Confidence Bounces Back in May to Near-Annual High

Consumer Confidence Bounces Back in May to Near-Annual High

Consumer-Confidence-Index-Reuters
Consumer-Confidence-Index-Reuters

Conference Board Consumer Confidence Index. (Photo: Reuters)

Surveys of Consumers reported on Friday that a preliminary readings show consumer confidence bounced back in May to its strongest level in nearly a year.

The University of Michigan preliminary consumer sentiment index for May, released Friday, registered at 95.8, compared with a final April reading of 89.0. May’s preliminary reading was the strongest since June 2015 and it followed the lowest reading reported since September 2015 in April.

Economists surveyed by The Wall Street Journal had expected the preliminary May index would hold steady at 89.0.

“Consumer sentiment rebounded in early May due to more frequent income gains, an improved jobs outlook and the expectation of lower inflation and interest rates,” said Richard Curtin, the survey’s chief economist. “The largest gains were recorded among lower income and younger households, although the gains were recorded among all income and age subgroups as well as across all regions.”

Consumer Confidence Preliminary Results for May 2016
May Apr May M-M Y-Y
2016 2016 2015 Change Change
Index of Consumer Sentiment 95.8 89.0 90.7 +7.6% +5.6%
Current Economic Conditions 108.6 106.7 100.8 +1.8% +7.7%
Index of Consumer Expectations 87.5 77.6 84.2 +12.8% +3.9%
Next data release: May 27, 2016 for Final May data at 10am ET

Nearly all of the gains in consumer confidence this month came from the Expectations Index, which rose to its highest level in nearly a year.

“To be sure, the data still indicated the negative impact of uncertainty about future economic policies associated with the Presidential election, but its overall impact was overwhelmed by favorable economic developments,” Mr. Curtain added. “It is too early to judge the potential impact of the election on consumers’ expectations, and one month’s rebound in consumer confidence is insufficient to increase the current forecast for inflation-adjusted consumer expenditures from 2.5% during 2016.”

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PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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