Consumer confidence bounced back in May after months of decline

foxbusiness.com:

LSEG director of consumer research Jharonne Martis analyzes the health of the consumer and explains what's behind the shift in spending on «Making Money.»

U.S. consumer confidence rose in May after it declined for the last three months amid optimism about the labor market, although Americans expect inflation and high interest rates to persist.

The Conference Board's Consumer Confidence Index rose from 97.5 in April to 102 in May. Economists polled by the Wall Street Journal had projected the index to decline again to 96, and the gauge outperformed the University of Michigan's consumer sentiment index.

«Confidence improved in May after three consecutive months of decline,» Dana Peterson, chief economist at the Conference Board, said in a statement. He added that the «overall confidence gauge remained within the relatively narrow range it has been hovering in for more than two years.»

«Compared to last month, confidence improved among consumers of all age groups. In terms of income, those making over $100K expressed the largest rise in confidence. On a six-month moving average basis, confidence continued to be the highest among the youngest (under 35) and wealthiest (making over $100K) consumers,» Peterson wrote.

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Consumer confidence ticked up in May after three straight months of decline in the Conference Board's latest report. (David Paul Morris / Bloomberg / File / Getty Images)

The report found that consumers cited prices – particularly for food and groceries – as having the greatest impact on their views of the U.S. economy. Their expectations about average inflation over the next 12 months edged up from 5.3% to 5.4%.

Peterson