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Friday, June 21, 2024

U.S. Consumer Confidence Rebounds in May

U.S Consumer Confidence Rebounds

The U.S. consumer confidence report for May showed an improvement after several months of declines. The Conference Board’s consumer confidence index came in at 102 for May, up from the previous April figure of 97.0.

Within the report, both the present situation and expectations indices rose. The present situation index increased to 143.1 from 142.9 in April. The expectations index saw a larger gain, rising to 74.6 from 66.4 the previous month.

Other details from the report painted a positive picture for consumer spending. The percentage of consumers saying jobs are “hard to get” declined to 13.5% from 15.5% in April. Meanwhile, the proportion expecting their incomes to rise over the next six months increased to 16.9% from 16.8%.

Inflation expectations remained elevated but stable. Consumers see prices rising 5.4% over the next 12 months, matching April’s 5.3% forecast.

The improvement in confidence helped stabilize the U.S. dollar after several down days. However, some analysts noted that the dollar had rallied strongly ahead of the report, suggesting markets were not waiting for confirmation from the consumer data.

DXY, Consumer Confidence

Looking ahead, analysts say underlying economic fundamentals remain supportive for consumer spending. Wage growth continues to outpace inflation, boosting real incomes. High stock prices and gains in home values are enhancing household wealth and balance sheets. If these positive trends persist, it could help underpin consumer confidence and spending in the coming months.

Publisher and editor of LJLNews. I am a Stock Market enthusiast, with an interest for politics. I hope you enjoy reading the articles! Contact me at: Lazaruslucas@ljlnews.com

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