Consumer Confidence Preview: Consumers Remain Cautious About Short-Term Outlook

The Conference Board is set to release Consumer Confidence at 10 a.m. ET, with expectations for a reading of 97.4. Consensus estimates range from 94.5 to 99.0 according to Bloomberg. The expected 97.4 reading would top last month's level of 95.4 and put the index back near the recent highs set earlier this year. The Conference Board compiles, along with Nielsen, a survey of consumer attitudes on the economy. The headline Consumer Confidence Index is based on consumers' perceptions of current business and employment conditions, as well as their expectations for six months out regarding business conditions, employment and income. Three thousand households nationwide are surveyed each month. The baseline reading is 100, with 1985 being the baseline year. Lynn Franco, Director of Economic Indicators at The Conference Board, noted after last month's report that, "While current conditions in the second quarter appear to be improving, consumers still remain cautious about the short-term outlook." Consumers' optimism about the short-term outlook edged down in May. The percentage of consumers expecting business conditions to improve over the next six months rose from 15.4 percent to 15.6 percent, while those expecting business conditions to worsen also rose from 9.1 percent to 10.8 percent. Consumer confidence is also closely tied to consumer spending.