Inflation concerns and recession fears pushed consumer confidence down in May, according to the latest conference board report…(Conference Board)
- M-O-M: The Conference Board Consumer Confidence Index decreased slightly in May to 106.4, down slightly from 108.6 in April.
- Y-O-Y: Consumer confidence is now down almost 9 points from the 117.2 reported in May 2021.
It was an all-around decline in May with both Present and Expectations Index down for the month. However, consumers are still twice as confident about current economic conditions vs what will be happening in the next six months…
- The Present Situation Index fell 3.3 points to 149.6 thanks to a drop in the number of consumers who said jobs were “plentiful,” at 51.8%, down from 54.8% the previous month.
- The Expectations Index was down 1.5 points to 77.5 thanks to 14.5% of consumers who expect their incomes will decrease, up from 13.2% the previous month.
Lynn Franco, Senior Director of Economic Indicators at The Conference Board, said rising rates along with inflation are putting a dent in demand for big-ticket items…
- Meanwhile, purchasing intentions for cars, homes, major appliances, and more all cooled—likely a reflection of rising interest rates and consumers pivoting from big-ticket items to spending on services. Vacation plans have also softened due to rising prices. Indeed, inflation remains top of mind for consumers, with their inflation expectations in May virtually unchanged from April’s elevated levels.