U.S. Consumer Confidence Declines Marginally in May

The U.S. consumer confidence held steady in May, after rising in April, data by the Conference Board showed on Tuesday.

The Consumer Confidence Index reached 117.2, compared with 117.5 in April.

Meanwhile, the Present Situation Index rose from 131.9 to 144.3.

As for the Expectations Index, it registered a decline to 99.1 in May, down from 107.9 last month.

Commenting on the reading, Lynn Franco, Senior Director of Economic Indicators at The Conference Board, said: “After rebounding sharply in recent months, U.S. consumer confidence was essentially unchanged in May. Consumers’ assessment of present-day conditions improved, suggesting economic growth remains robust in Q2.”

“However, consumers’ short-term optimism retreated, prompted by expectations of decelerating growth and softening labor market conditions in the months ahead.

“Consumers were also less upbeat this month about their income prospects—a reflection, perhaps, of both rising inflation expectations and a waning of further government support until expanded Child Tax Credit payments begin reaching parents in July. Overall, consumers remain optimistic, and confidence should remain resilient in the short term, as vaccination rates climb, COVID-19 cases decline further, and the economy fully reopens.”