The Conference Board (05/29/2012)

The Conference Board Consumer Confidence Index, which had declined slightly in April, fell further in May. The Index now stands at 64.9, down from 68.7 in April (1985=100). The Expectations Index declined to 77.6 from 80.4, while the Present Situation Index decreased to 45.9 from 51.2 last month.

“Consumers were less positive about current business and labor market conditions, and they were more pessimistic about the short-term outlook,” says Lynn Franco, director of economic indicators at the Conference Board. “However, consumers were more upbeat about their income prospects, which should help sustain spending. Taken together, the retreat in the Present Situation Index and softening in consumer expectations suggest that the pace of economic growth in the months ahead may moderate.”

Consumers’ outlook for the labor market was also less positive. Those expecting more jobs in the months ahead decreased to 15.8% from 16.9%, while those anticipating fewer jobs increased to 21.0% from 18.4%. The proportion of consumers expecting an increase in their incomes improved to 15.2% from 13.9%.