WASHINGTON - Consumer confidence jumped in May as households grew more upbeat about the labor market, suggesting the economy remained on solid ground despite signs that activity was slowing after being temporarily boosted by exports and a build-up of inventories.
Economists said the strong readings likely did not fully capture the impact of the trade standoff between Washington and Beijing. The cut off date for the Conference Board survey was on May 16. The U.S. raised existing tariffs on $200 billion in Chinese goods to 25% from 10% on May 10, prompting Beijing to retaliate with its own levies on American imports.
The survey’s expectations index, based on consumers’ short-term outlook for income, business and labor market conditions, increased to a reading of 106.6 this month from 102.7 in April. While the sentiment surveys have been upbeat, the so-called hard economic data have weakened in recent months. Industrial production, durable goods orders, retail and home sales fell in April, suggesting the economy lost considerable momentum early in the second quarter after getting a lift from exports and an accumulation of unsold goods in warehouses in the first quarter.
Consumers anticipated inflation would remain muted over the next 12 months. The survey’s one-year inflation expectations fell to 4.4% in May from 4.6% in April.
Strong labor market boosts US consumer spending, and confidence.🇺🇸💋🌎😍💰
ericswalwell is going to have to bring down the consumer confidence.
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