Consumer Confidence Hits 5-Month Low

The consumer confidence index survey was released by the Conference Board on Tuesday and showed that optimism in the U.S. economy has hit a 5-month low. The reading fell from 68.7 in April to 64.9 in May. This compared to estimates from economists of a gain of 0.7 to 69.4. The data showed that only 13.6% of survey respondents believe that business conditions are currently good and only 7.9% think that jobs are plentiful. In 6 months time, 16.6% of respondents thought that business conditions would be better and 15.8% thought there would be more jobs. "The softening in [consumer confidence] suggests that the pace of economic growth in the months ahead may moderate," said Lynn Franco, the director of economic indicators at The Conference Board. The sharp drop in May consumer confidence coincides with a sell-off in the stock market. The S&P 500 has now lost almost 5% since May 1.