NEW YORK- The Conference Board on Tuesday reported that its Consumer Confidence Index was up from 106.3 in April to 108 for May.
The Present Situation Index rose to 136.1 and the Expectations Index was up a point to 89.2.
“The bounce-back in confidence was due primarily to a more upbeat assessment of present-day business conditions,” said Lynn Franco, Director of the Conference Board Consumer Research Center. “Consumers’ view of the job market, both present and six months from now, was little changed and did not provide a boost in confidence. The short-term outlook remains cautious, and rising gasoline price are having a negative impact on consumers’ inflation expectations.”
For current-day conditions, 29.4 percent of respondents listed conditions as “good,” up from 27.5 percent.
In the labor market, respondents indicating jobs were “hard to get” slipped to 19.9 from 20.3 percent. Those indicating that jobs were “plentiful” remained at 29 percent.
For the next six months, consumers are cautious, with 15.1 percent indicating that they expect business conditions to improve and 10.1 percent expecting conditions to worsen.
The future labor market outlook is relatively flat, with 13.3 percent of respondents expecting more jobs in the near future and 15.7 expecting fewer jobs.
“All in all, confidence levels continue to suggest growth, albeit at a slow pace,” Franco added.
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