Conference Board Confidence Stagnates In May As ‘Hope’ Evaporates

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.

Source: Bloomberg

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.