Consumers were more confident this month, sending the Consumer Confidence Index up.
The Conference Board’s Consumer Confidence Index is now at 83, up from 81.7 last month. Both components of the Index showed gains compared with their respective levels in April. The present situation index rose to 80.4 from 78.5, while the expectations component inched up to 84.8 from 83.9.
Lynn Franco, director of economic indicators at The Conference Board, said, “Consumer confidence improved slightly in May,… In fact, the percentage of consumers expecting their incomes to grow over the next six months is the highest since December 2007 (20.2 percent). Thus, despite last month’s decline, consumers’ confidence appears to be growing.”
One highlight for this month’s improvement seems to be consumers’ assessment of the labor market. Those claiming jobs are “plentiful” increased to 14.1 percent, up from the 13 percent of last month. Those anticipating more jobs in the months ahead also rose to 15.4 percent from 14.7 percent. And the proportion of consumers who said they are expecting their incomes to grow rose to 18.3 percent from 16.8 percent.