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Consumer confidence falls more than expected

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Consumer confidence falls more than expected

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The Conference Board‘s consumer confidence index fell for a second straight month, to 117.9 in May, a drop that was more than expected. 

Economists had forecast a reading of 120.3.

“Consumers’ assessment of present-day conditions held steady, suggesting little change in overall economic conditions,” said Lynn Franco, director of economic indicators at The Conference Board.

“Looking ahead, consumers were somewhat less upbeat than in April, but overall remain optimistic that the economy will continue expanding into the summer months.”

Among age groups, confidence increased only in the under-35 bracket — millennials.

The share of people who expected business conditions to improve over the next six months fell to 25.1% from 21.3%, while those expecting conditions to worsen dipped to 10.1% from 10.4%. 

Consumer and business confidence jumped after the US election and remains relatively elevated. The University of Michigan’s separate survey of consumers highlighted a partisan divide, with Republicans developing a bullish outlook on the economy while Democrats turn bearish.

Read more stories on Business Insider, Malaysian edition of the world’s fastest-growing business and technology news website.



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