Tags: consumer | confidence | sentiment | economy

Consumer Confidence Unexpectedly Falls to 6-Month Low

Image: Consumer Confidence Unexpectedly Falls to 6-Month Low
(AP)

Tuesday, 31 May 2016 11:54 AM


Consumer confidence unexpectedly fell in May for a second month as Americans became less enthusiastic about the current state of the economy, a report from the New York-based Conference Board showed on Tuesday.

The Conference Board’s sentiment index fell to 92.6 this month from a revised 94.7 reading in April, the New York-based private research group said Tuesday. The median forecast in a Bloomberg survey of 68 economists called for an increase to 96.1. Estimates ranged from 94 to 101.4.

Key Points

Index fell to 92.6, the lowest since November, from a revised 94.7 in April; median forecast in a Bloomberg survey of economists was 96.1 Measure of consumer expectations for the next six months fell to 79, the lowest since February 2014 from 79.7 Gauge of present conditions dropped to 112.9, also a six-month low, from 117.1

Big Picture


Growing concerns about employment, which had been the strongest part of the U.S. economy, would make it difficult to sustain the pickup in spending seen at the start of the second quarter. Still, the survey also showed more households this month expected to buy automobiles and homes in the next six months, indicating souring attitudes had yet to influence buying patters.

Economist Takeaways

“Consumers remain cautious about the outlook for business and labor market conditions,” Lynn Franco, director of economic indicators at the Conference Board, said in a statement. “Thus, they continue to expect little change in economic activity in the months ahead.” “The juxtaposition between the robust consumer spending figures and the softer confidence numbers released on the very same day is especially hard to reconcile, but I come down on the side of the spending figures, as it always make sense to follow the actual dollars,” Stephen Stanley, chief economist at Amherst Pierpont Securities LLC in New York, said in a research note.

The Details

Share of Americans who said jobs were currently hard to find rose to 24.4 percent from 22.8 percent The share saying jobs were plentiful was little changed at 24.3 percent compared with 24.2 percent Share of Americans who see greater job availability in the next six months was also little changed at 12.8 percent from 12.7 percent in April About 16.2 percent projected incomes will increase in the next six months, up from 15.8 percent in April Buying plans improved for automobiles and homes, but declined for appliances

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Consumer confidence unexpectedly fell in May for a second month as Americans became less enthusiastic about the current state of the economy, a report from the New York-based Conference Board showed on Tuesday.
consumer, confidence, sentiment, economy
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2016-54-31
Tuesday, 31 May 2016 11:54 AM
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