Consumer Confidence in U.S. Fell in May to Four-Month Low

[Purveyor]

By Timothy R. Homan - 2012-05-29T14:18:25Z

Confidence among U.S. consumers unexpectedly fell in May to the lowest level in four months as Americans grew more pessimistic about the labor market.

The Conference Board’s confidence index decreased to 64.9 from a revised 68.7 in the prior month, figures from the New York-based private research group showed today. The median forecast of economists surveyed by Bloomberg News called for a reading of 69.6.

The weakest payroll gains in six months may raise concerns that economic growth is not fast enough to bring down the jobless rate. More employment is needed to boost consumer spending, which accounts for about 70 percent of the economy.

“We are making progress when it comes to the labor market, but clearly this is another sign that it’s still very slow- going,” said Aaron Smith, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, whose forecast was closest. “When we see expectations get marked down, that can cause consumers to think twice about making big-ticket purchases.”

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http://www.bloomberg.com/news/2012-05-29/consumer-confidence-in-u-s-fell-in-may-to-four-month-low.html

[DJ13]

1. “We are making progress when it comes to the labor market.."

Progress isnt defined just as more jobs, reversing the stagnation in wages for those already employed is just as important if we hope to see a recovery.

That side never gets discussed by the so called economists.

[ProgressiveEconomist]

2. Huh? "Consumer sentiment highest since 2007"

But what is the TREND? And there are several measures of consumer sentiment:

From http://articles.boston.com/2012-05-26/business/31852599_1_consumer-sentiment-consumer-mood-consumer-confidence

"Consumer sentiment highest since 2007

May 26, 2012

Gas prices have fallen in recent weeks. (Rick Bowmer/Associatedƒ)WASHINGTON „ A better hiring outlook and lower gas prices pushed a measure of US consumer confidence to its highest level in 4½ years.

The Thomson Reuters/University of Michigan index of consumer sentiment jumped to 79.3 in May, up from 76.4 in the previous month.

Thats the best reading since October 2007 „ two months before the recession began...."

[demosincebirth]

3. I read the same thing. Where do they get this other crap?

Last edited Tue May 29, 2012, 06:21 PM - Edit history (1)

[Purveyor]

4. And now this from today: Americans' Economic Confidence Stable at Four-Year High

PRINCETON, NJ -- The Gallup Economic Confidence Index held at -16 last week, the highest the index has reached in the four-plus years of Gallup Daily tracking in the United States. This is slightly improved over the -18 readings in the first half of May, and up significantly from -27 at the start of the year.

Gallup Economic Confidence Index -- 2012 Weekly Averages


Longer term, the index has fully recovered from the near-record-low -54 it fell to last summer as a political battle raged in the U.S. over raising the debt ceiling. The index is now marginally higher than its level at the start of 2011, which in turn was slightly improved over the high points reached in 2009 and 2010, and slightly better than where it stood at the beginning of January 2008.

Gallup Economic Confidence Index -- Weekly Averages, 2008-2012


The Gallup Economic Confidence Index is an average of two components of consumers' psychology: Americans' ratings of current economic conditions and their perceptions of whether the economy is getting better or getting worse. The index has a theoretical maximum of +100, obtained if all Americans say the economy is excellent or good and improving. The index could go as low as -100 if all Americans perceive the economy as poor and getting worse.

Americans' perceptions of current economic conditions were up slightly last week, with 17% describing conditions as "excellent" or "good" and 37% as "poor," for a net economic conditions rating of -20, the best since September 2008. At the same time, the -12 economic outlook score (reflecting 42% of Americans saying the economy is improving and 54% saying it is worsening) was down slightly, resulting in stability in the overall Economic Confidence Index for the week.

MORE...

http://www.gallup.com/poll/154913/Americans-Economic-Confidence-Stable-Four-Year-High.aspx