Conference Board Consumer Confidence Index. (Photo: Reuters)
The Conference Board’s gauge of U.S. consumer confidence fell in May to 92.6, far more than the median forecast and for the second consecutive month. The gauge missing expectations, or being down from an upwardly revised 94.7 in April, is yet another sign of continued weak data indicating Americans are restraining household spending.
Economists surveyed by The Wall Street Journal had expected a May reading of 96.0.
“Consumer confidence declined slightly in May, primarily due to consumers rating current conditions less favorably than in April,” said Lynn Franco, the group’s director of economic indicators. “Expectations declined further, as consumers remain cautious about the outlook for business and labor market conditions.”
However, the report does follow more optimistic data.
The Commerce Department reported on Tuesday consumer spending increased by 1% in April from the prior month, which the largest one-month gain since August 2009. Forecasting firm Macroeconomic Advisers on Friday estimated gross domestic product would grow at a 2.5% annual rate in the current quarter, up from the first quarter’s 0.8% growth pace.
But other reports have been mixed. The final reading of consumer sentiment in the Survey of Consumers conducted by the University of Michigan’s clocked in at 94.7, missing expectations. But it was also up from an April reading of 89.0, which was the lowest since September 2015.
