Consumer Confidence Bounces In May, ‘Present Situation’ Highest In 17 Years

Confidence in the ‘present situation’ reached its highest since March 2001, and thanks to a downward revision in April, May’s ‘future expectations’ bounced modestly leaving the headline just shy of cycle peaks…

Consumer confidence rose to a three-month high in May, according to a report Tuesday from the New York-based Conference Board.

The group’s index increased to 128, from a downwardly revised 125.6 in the prior month. The reading matched the median forecast in a Bloomberg survey of economists.

Business Conditions improved (but expectations for business conditions in 6 months declined), “jobs plentiful” increased once again (but so did “jobs hard to get”), and income expectations declined.

There was a small rebound in expectations for higher stock prices and a modest drop in expectations for higher rates, even though inflation expectations jumped to 5.0% in the next 12 months.

 

However, we note that “plans to buy a car, home, or major appliance” in the next six months all dropped in May.

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