Consumer confidence dips after hitting five-year high last month
WASHINGTON -- Consumer confidence unexpectedly dipped this month after reaching its highest point in more than five years in May, but continued to show Americans feeling relatively good about the state of the economy, according to a leading private barometer.
The preliminary reading from Thompson Reuters and the University of Michigan fell to 82.7 from last month’s 84.5, Reuters said Friday. Analysts had expected the figure to hold steady.
But consumers were less optimistic about their job prospects and expected to see smaller gains in home values, the survey’s director, Richard Curtin, told Reuters.
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Thompson Reuters and the University of Michigan publicly post their final monthly consumer sentiment report on their website. But the preliminary reading is given only to subscribers.
The organizations have come under fire this week after reports that they give the reading two seconds early to traders who pay an additional fee, allowing them to get a jump on information that often moves financial markets.
The May figure was in line with the other leading consumer confidence gauge. The Conference Board said its measure reached its highest level in more than five years last month as well. It will release updated figures later this month.
“Consumers continue to show hot-and-cold sentiment in the second quarter, unable to really evaluate true feelings about their current situation,” said Leslie Levesque, senior economist at IHS Global Insight. “However, they have shown a more positive outlook on where the economy is headed.”
That optimism should translate into stronger consumer spending in the second half of the year, she said.
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