Consumer confidence index in the United States fell in May

The consumer confidence index in the United States registered a drop in May, going from 103.7 points in April to 102.3 points in the fifth month of the year.

The main reason for the drop in the consumer confidence index is a combination of elements, including the prevailing uncertainty in the business market, debt, and the labor market, among others.

Consumers show a pessimistic perspective regarding the situation of the domestic market. This has affected the expectations index, “based on consumers’ near-term outlook on income, business and labor market conditions, it has fallen to 71.5 from 71.7 in April.”

Regarding inflation expectations, a sensitive issue not only for the United States but for the entire continent, consumers believe that it will continue to rise. Added to this is the fear triggered by the recent cases of bank failures that have shaken the country’s financial system.

In this regard, analysts at Pantheon Macroeconomics have pointed out: “Real consumption will be much weaker and the expectations index will sink further as the full effects of the recent bank failures become more evident. In particular, the reduced availability and the higher cost of consumer credit, as banks focus on generating liquidity rather than expanding their loan portfolios.”

M.Pino

Source: Bolsamania

(Reference image source: Hobi industri, Unsplash)

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