US consumer confidence rises in May after three months of declines
Consumer confidence in the U.S. rose in May following three straight months of declines, but Americans remain anxious about elevated inflation and interest rates
WASHINGTON — Consumer confidence in the U.S. rose in May after three straight months of declines, though Americans are still anxious about inflation and interest rates.
The Conference Board, a business research group, said Tuesday that its consumer confidence index rose in May to 102 from 97.5 in April. Analysts were expecting the index to decline again.
The index measures both Americans’ assessment of current economic conditions and their outlook for the next six months.
The measure of Americans’ short-term expectations for income, business and the job market climbed to 74.6 this month from a dismal 68.8 in April. A reading under 80 can signal a potential recession in the near future.
Consumer expectations of a recession in the next year rose again in May but are still well below their peak in May of 2023. More than two-thirds of respondents to the survey said they believe a recession is “somewhat” or “very” likely in the next 12 months. That's in contrast to the Conference Board's survey of CEOs, only about a third of whom foresee a recession in the next 12 to 18 months.
The number of respondents who said they planned to buy a car rose slightly for a second straight month and those who said they planned to buy a major appliance rose for the first time in several months, the board said.
Consumers who said they plan to purchase a home remained at its lowest level since August 2012. Sales of existing homes slumped in April as high mortgage rates and rising prices discouraged potential buyers.
Consumers’ view of current conditions rose to 143.1 in May from 140.6
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