U.S. Consumer Confidence Index

SOURCE www.marketwatch.com
The U.S. consumer confidence index rose to 102 in May, defying expectations of a decrease. The survey indicates positive sentiment about current economic conditions and future expectations. Despite growth in the economy, inflation remains a concern. A significant number of Americans believe the country is in a recession, which experts attribute to inflation. Market reactions were mixed, with stocks opening mixed and the 10-year Treasury yield slightly down.

Key Points

  • Consumer confidence index rose to 102 in May, defying expectations
  • Survey shows positive sentiment about current economic conditions and future expectations
  • Real GDP estimated to be growing at a steady pace
  • Inflation is a sticky issue in the economy

Pros

  • Consumer confidence index increased, showing positive sentiment
  • Growth in the economy with real GDP estimated to be at a 3.5% annual rate
  • Favorable views of the labor market contributing to rise in confidence

Cons

  • Inflation remains a concern
  • 56% of Americans believe the U.S. is in a recession