Consumer Confidence Falls Victim to More Pessimism
The Conference Board Consumer Confidence Index® decreased from 66.0 to 60.8 in May despite slight bumps after Osama bin Laden was killed. The Present Situation Index decreased from 40.2 to 39.3. The Expectations Index declined from 83.2 to 75.2 last month.
Lynn Franco, Director of The Conference Board Consumer Research Center, comments:
“A more pessimistic outlook is the primary reason for this month’s decline in consumer confidence. Consumers are considerably more apprehensive about future business and labor market conditions as well as their income prospects. Inflation concerns, which had eased last month, have picked up once again. On the other hand, consumers’ assessment of current conditions declined only modestly, suggesting no significant pickup or deterioration in the pace of growth.”
The SPDR S&P Retail ETF (NYSE:XRT) is up 0.32% this morning.