A tale of two consumer sentiment gauges
Summary
Consumer confidence in the U.S. dropped slightly in early May, according to a report by the Conference Board. Another survey by the University of Michigan showed a much bigger drop in consumer sentiment, showing that people feel less positive about the economy amid high prices and concerns about the Middle East war.Key Facts
- The Conference Board’s consumer confidence index fell by 0.7 points in May, reaching 93.1.
- The index level is still higher than it was in January.
- Consumers mentioned prices, oil, and gas more often for the second month in a row.
- Concerns about war and geopolitics remained high, affecting views on inflation.
- The University of Michigan’s survey showed a sharper decline in consumer sentiment than the Conference Board’s.
- Michigan’s survey focuses more on buying power and finances, which have been hurt by inflation.
- The Conference Board focuses more on the job market, which is holding up relatively well.
- The data covers a period before recent positive news about a potential Iran deal.
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