The U.S. consumer confidence index printed lower in May, declining for the third straight month, to the lowest level since January as Americans have a gloomier outlook in May on present and future conditions.
According to the Conference Board survey, the consumer-confidence index fell to 64.9 in May, from a revised 68.7 in April well below the consensus expectation for an increase to 70.0. A prior estimate for April pegged the level at 69.2.
“Consumers were less positive about current business and labour market conditions, and they were more pessimistic about the short-term outlook,” said Lynn Franco, director of economic indicators at the Conference Board.
The data suggest a moderating pace of economic growth in coming months, she added.
However, it is important to note that the drop in today’s C.B. consumer confidence index is in contrast to other confidence indicators for the month, including the recent University of Michigan number that rose 3.9 points to a new 4-1/2 year high.
The U.S. dollar did not react much to the data today as U.S. equity markets were higher, keeping risk currencies supported.