US CB Consumer Confidence Index rose to 98.0 in May
- US CB Consumer Confidence Index rebounds in May.
- The US Dollar Index clings to daily gains around the 99.40 region.
In May, US consumer morale rebounded, with the Conference Board's Consumer Confidence Index rising to 98.0 from 86.0 (revised from 85.7), reversing the previous drop.
Consumer mood strengthened in May, as opinions on current business and labour market circumstances shifted. The Present Situation Index increased by 4.8 points to 135.9. More significantly, the Expectations Index, which measures short-term expectations for income, economic activity, and employment, gained 17.4 points to 72.8, still remaining below the 80-point level usually associated with recession fears
According to Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board: “The rebound was already visible before the May 12 US-China trade deal but gained momentum afterwards. The monthly improvement was largely driven by consumer expectations as all three components of the Expectations Index—business conditions, employment prospects, and future income—rose from their April lows. Consumers were less pessimistic about business conditions and job availability over the next six months and regained optimism about future income prospects. Consumers’ assessments of the present situation also improved. However, while consumers were more positive about current business conditions than last month, their appraisal of current job availability weakened for the fifth consecutive month.”
Market reaction
The US Dollar (USD) remains well bid around the 99.40 zone when tracked by the US Dollar Index (DXY), despite a mild pullback in US yields across the board.
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
