US consumer confidence falls in May

'Consumers’ view of current conditions became somewhat less upbeat while their expectations remained gloomy,' says Conference Board economist

By Ovunc Kutlu

ISTANBUL (AA) - US consumer confidence fell in May, but managed to come in better than market expectations, according to New York-based research group the Conference Board.

The consumer confidence index, a leading indicator of consumer spending and economic activity, fell 1.4 points to 102.3 in May, it said Tuesday in a statement.

The expectation for the index was to come in at 99.0, while the figure for April was revised upwards to 103.7.

"Consumer confidence declined in May as consumers’ view of current conditions became somewhat less upbeat while their expectations remained gloomy," said Ataman Ozyildirim, senior director of economics at the Conference Board.

"Consumers also became more downbeat about future business conditions, weighing on the expectations index. However, expectations for jobs and incomes over the next six months held relatively steady," he added.

American consumers expected in May that inflation would average 6.1% over the next 12 months, down significantly from the peak of 7.9% recorded last year, Ozyildirim noted.

"Nonetheless, consumers continued to view inflation as a major influence on their view of the US economy ... Meanwhile, plans to purchase autos and big-ticket appliances ticked up somewhat compared to April," said Ozyildirim.

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