Americans continue to feel pretty good about the current state of the U.S. economy, but less so about their short-term outlook.
Americans continue to feel pretty good about the current state of the U.S. economy, but less so about their short-term outlook.
The latest survey by The Conference Board showed that its consumer confidence index fell slightly to 117.2 in May, since the peak coronavirus pandemic in April (117.5).
The current situation index, which measures consumer ratings on current business and labor market conditions, rose to 144.3 this month from 131.9 on April.
But the expectations index, which measures attitudes towards the short-term outlook for jobs, incomes and companies, fell to 99.1 in May, from 107.9 the previous month.
“Consumer assessment of current conditions has improved, suggesting that economic growth remains robust during the second quarter,” said Lynn Franco, director of economic indicators at The Conference Board. “However, short-term consumer optimism receded, sparked by expectations of slowing growth and softening labor market conditions in the coming months.”
Consumers were less excited in May about their revenue outlook, a development Franco said could reflect rising inflation expectations, as well as the declining effects of the $ 1,400 government stimulus checks that go receive the majority of Americans earlier this year.
Consumer confidence is a key component of U.S. economic health, as consumer spending drives about two-thirds of growth, and the more optimistic Americans feel about their job prospects and the economy in general. , they will be more likely to earn goods and services.
The American economy it grew at an annual rate of 6.4 percent during the first three months of this year, as accelerated coronavirus vaccinations, pandemic setbacks, and generous government aid to relieve coronavirus invigorated consumers.
The latest reading from Atlanta Federal Reserve’s GDPNow tracker sees the U.S. economy grow at an annual rate of 10.1 percent in the second quarter.
