Consumer Confidence Rebounds in May Amidst Economic Uncertainty: Inflation Concerns and Job Market Bolster Optimism

New York, New York, USA United States of America
Consumer confidence in the US rebounded in May after three consecutive months of declines.
Consumers' expectations for inflation over the next year rose to 5.4% from 5.3% in April.
Consumers felt better about the economy across all age groups and were more optimistic about business conditions and their personal financial situation.
Elevated inflation, particularly for food and groceries, remains a concern for consumers.
Fewer consumers reported jobs as 'hard to get' and wages have been growing at a solid pace in recent months.
The Conference Board's Consumer Confidence Index climbed to 102 and the University of Michigan's consumer sentiment index rose to 73.6.
The stock market has been performing well, boosting confidence among wealthier Americans.
Unemployment remained below 4% and job openings exceeded unemployed people seeking work.
Consumer Confidence Rebounds in May Amidst Economic Uncertainty: Inflation Concerns and Job Market Bolster Optimism

Consumer confidence in the United States rebounded in May after three consecutive months of declines, according to two separate reports released on Tuesday. The Conference Board's Consumer Confidence Index climbed to a reading of 102, up from 97.5 in April, while the University of Michigan's consumer sentiment index rose to 73.6 from 71 in May.

The Conference Board report showed that consumers felt better about the economy across all age groups and were more optimistic about business conditions and their personal financial situation. The labor market continued to bolster consumers' overall assessment of the present situation, with unemployment remaining below 4% and job openings exceeding unemployed people seeking work.

However, elevated inflation remains a concern for consumers. The Conference Board survey showed that respondents cited prices, particularly for food and groceries, as having the greatest impact on their view of the US economy. Inflation readings have come in hotter than expected in recent months, leading to concerns about rising costs and potential economic slowdown.

The University of Michigan report also highlighted inflation as a key concern for consumers. The survey's chief economist, Richard Curtin, noted that consumers' expectations for inflation over the next year rose to 5.4% from 5.3% in April.

Despite these concerns, workers are seeing pay increases above the rate of inflation. The Conference Board report showed that fewer consumers reported jobs as 'hard to get,' and wages have been growing at a solid pace in recent months.

The stock market has also been performing well, with major indexes reaching record highs in May. This has boosted confidence among wealthier Americans, who are the most upbeat about the state of the economy.

However, some economists remain cautious about the outlook for consumer spending and economic growth. A survey of CEOs conducted by The Conference Board found that 35% anticipated a recession within the next 12 to 18 months.

Overall, while consumer confidence has rebounded in May, there are still significant challenges facing the economy, including inflation and uncertainty about future economic conditions.


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Confidence

90%

Doubts
  • Are there any specific data points or studies that support the claim of 'elevated inflation'?
  • Is it accurate to say that all age groups felt better about the economy in May?

Sources

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

US Consumer Confidence Rose in May

PR Newswire The Conference Tuesday, 28 May 2024 17:28
  • Unique Points
    • Consumer confidence increased to 102.0 in May from 97.5 in April
    • Consumers assessment of current business conditions was slightly less positive than last month but labor market continued to bolster overall assessment
    • Confidence improved among consumers of all age groups with those making over $100K expressing the largest rise in confidence
  • Accuracy
    • Consumer confidence improved for the first time in four months, with a reading of 102.
    • Fewer consumers reported jobs as ‘hard to get’.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The article contains several fallacies. The first is an appeal to authority in the form of citing CEO confidence as evidence against a recession. This is a fallacy because CEOs are not infallible predictors of economic conditions and their opinions do not necessarily reflect reality. The second fallacy is dichotomous depiction, where the author frames the expectations index as being either above or below 80, implying that anything below 80 indicates a recession. This is a fallacy because economic conditions are rarely so clear-cut and there are many factors that can contribute to a recession beyond just one index. The third fallacy is inflammatory rhetoric, where the author uses language such as 'anxious' and 'resurgence in recession concerns' to create a sense of fear and urgency around the economic situation. This is a fallacy because it is not objective reporting of the data and instead seeks to manipulate readers' emotions.
    • According to our CEO Confidence survey, only 35 percent of CEOs surveyed in April anticipated a recession within the next 12 to 18 months. Consumers were nonetheless upbeat about the stock market, with 48.2 percent expecting stock prices to increase over the year ahead, compared to 25.4 percent expecting a decrease and 26.4 expecting no change.
    • Despite this improvement, for the fourth consecutive month, the Expectations Index was below 80, the threshold which usually signals a recession ahead.
    • The survey also revealed a possible resurgence in recession concerns.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Americans are feeling better about the economy for the first time in four months

CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Bryan Mena Tuesday, 28 May 2024 14:35
  • Unique Points
    • Consumer confidence improved for the first time in four months, with a reading of 102.
    • Americans felt better about the economy across all age groups.
    • The labor market continued to bolster consumers’ overall assessment of the present situation.
    • Unemployment remains below 4% and job openings exceed unemployed people seeking work.
  • Accuracy
    • Elevated inflation was a major concern leading to three straight months of consumer confidence decline.
    • Consumers cited prices, especially for food and groceries, as having the greatest impact on their view of the US economy.
    • 48.2% of respondents expected stock prices to increase over the year ahead, compared to 25.4% expecting a decrease and 26.4% expecting no change.
    • Major stock indexes have soared to record highs recently.
    • A higher share of Americans saw improved prospects for an increase in the federal minimum wage as well as higher welfare and unemployment benefits.
    • Respondents’ expectations increased for expansions in federal student aid and student loan forgiveness.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Consumer confidence rebounds for first time in 3 months

Yahoo Finance Josh Schafer Tuesday, 28 May 2024 17:30
  • Unique Points
    • Consumer confidence unexpectedly rose in May after three consecutive months of declines.
    • Fewer consumers reported jobs as ‘hard to get’.
    • Number of Americans filing for unemployment benefits remains low.
    • Workers are seeing pay increases above the rate of inflation.
  • Accuracy
    • The latest index reading from the Conference Board was 102, above the expected 96 and higher than April’s 97.5.
    • Unemployment rate ticked up slightly to 3.9% but has been below 4% for 27 months.
    • Elevated prices, particularly food and groceries, impact consumers’ view of the US economy.
    • 13.5% of consumers said jobs were ‘hard to get’
    • (from article 2) Four consecutive months, Expectations Index was below the threshold of 80 indicating potential recession risk
    • (from article 2) Consumers assessment of current business conditions was slightly less positive than last month but labor market continued to bolster overall assessment
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

91%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Bloomberg - Are you a robot?

Bloomberg News Now Tuesday, 28 May 2024 17:30
  • Unique Points
    • Consumer confidence unexpectedly rose in May after three consecutive months of declines.
    • Fewer consumers reported jobs as ‘hard to get’.
    • Workers are seeing pay increases above the rate of inflation.
  • Accuracy
    • Consumer confidence increased to 102.0 in May from 97.5 in April
    • Consumer confidence improved for the first time in four months, with a reading of 102.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication