Consumer Confidence Jumps Higher in May, Aided by Lower Energy Prices

By May 25, 2012Economy

Consumer confidence jumped significantly in May, according to the Survey of Consumers from the University of Michigan and Thomson Reuters. The consumer sentiment index rose from 76.4 in April to 79.3 in May. This continues a nine-month trend of improvements in attitudes since last August.

The increase was largely due to a sharp increase in Americans’ perceptions about the current economic environment. This suggests that lower energy prices are helping to lift these figures. For instance, inflationary expectations continue to ease, with respondents now expecting 3.1 percent price increases over the next year. This is down from 3.9 percent in March.

Meanwhile, consumer opinions about future economic growth ebbed slightly, from 72.3 to 71.7. Nonetheless, individuals remain more confident about future conditions than they did last year, mirroring the longer-term upward trend.

Chad Moutray is chief economist, National Association of Manufacturers.

Chad Moutray

Chad Moutray

Chad Moutray is chief economist for the National Association of Manufacturers (NAM) and the Director of the Center for Manufacturing Research for The Manufacturing Institute, where he serves as the NAM’s economic forecaster and spokesperson on economic issues. He frequently comments on current economic conditions for manufacturers through professional presentations and media interviews. He has appeared on Bloomberg, CNBC, C-SPAN, Fox Business and Fox News, among other news outlets.
Chad Moutray

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