Consumer Confidence in May 2024
Consumer confidence surged in May, despite concerns about household finances, inflation, and a possible recession. Buying plans for autos remain low, while interest in big-ticket appliances and smartphones increased. Inflation expectations rose, along with the belief that interest rates will climb higher. Home purchasing plans are at their lowest level since August 2012, while home prices reached a record high in March.
Key Points
- Consumer confidence index rose to 102 in May
- Expectations of inflation and higher interest rates increased
- Home purchasing plans are at their lowest level since August 2012
Pros
- Consumer confidence index surged in May
- Expectations portion of the index saw a significant jump
- Renewed interest in buying big-ticket appliances and smartphones
Cons
- Concerns about household finances
- Worries about inflation and higher interest rates
- Perceived likelihood of a looming recession