US: Expect a modest rebound in consumer confidence in June – Wells Fargo

Research Team at Wells Fargo, notes that the US consumer confidence posted its second consecutive decline in May, falling 2.1 points to 92.6.

Key Quotes

“The present condition series fell 4.2 points to the lowest reading since November. Increasing gas prices may have been a factor in the lower confidence. That said, buying plans were a bright spot in the consumer confidence report as plans to purchase an automobile rose 0.8 percentage point and plans to purchase a home rose 0.7 percentage points.

In addition, the labor differential, which measures the difference between the share of respondents who reported jobs were plentiful and those stating jobs were hard to get, declined in May. While this series can bounce around on a month-to-month basis, the slower pace of improvement in the labor market is clear. Although we expect a modest rebound in June, the trend in consumer confidence has clearly deteriorated recently.”