Consumer Confidence: Negative Revisions, Still Near Highs, But Hints of Concern

Bottom Line: While there were negative revisions to April data, the level of consumer confidence in May remained near 18-year highs. Consumers noted in this survey that business conditions were generally "good", while their assessment of the jobs market was mixed. Additionally, in a potential signal that business confidence is not trickling down to the consumer, the percentage of consumers expecting an improvement in their short-term income prospects fell, while slightly more respondents expected a decline in their incomes. Consumer Confidence ROSE by 2.4 points in May to 128.0, compared with market expectations for an increase to 128.0. The index is now 8.8% ABOVE its year ago level. Present Situation Index ROSE by 4.2 points to 161.7. The index is 15.0% ABOVE its year ago level. The Expectations Index ROSE by 1.3 points to 105.6. The index is 3.2% ABOVE its year ago level. The labor differential, the percentage of respondents who said jobs are “hard to get” from the percentage who said jobs are “plentiful” , moved lower by 61.9 points to -39.0.