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Breaking Flooring News

Consumer confidence rebounds in May

May 29, 2001
NEW YORK -- The Conference Board's Consumer Confidence Index, which declined in April, snapped back in May. The Index now stands at 115.5 (1985=100), up from 109.9 in April.

The Present Situation Index increased from 156 to 158.6. The Expectations Index improved from 79.1 to 86.8. The Consumer Confidence Survey, the country's most comprehensive survey of consumer attitudes, is based on a representative sample of 5,000 U.S. households.

The monthly survey is conducted for The Conference Board by NFO WorldGroup, a member of The Interpublic Group of Companies.

"The rebound in consumer confidence was driven by optimism about future economic conditions," said Lynn Franco, director of The Conference Board's Consumer Research Center.

"Latest findings report rising confidence about job prospects over the next six months, but reveal growing concern about the current job market."

Nowhere, however, are there indications that consumers will curtail their spending, which points to continued economic growth. Consumers rating current business conditions as "good" rose from 28.2% in April to 30.7% in May. Those rating conditions as "bad" declined from 13.2% to nearly 12%. Consumers claiming jobs were "hard to get" increased from 14.2% to 14.7%. Those reporting jobs were plentiful fell slightly from 40.1% to 39.5%.

Consumers are more optimistic today than they were last month about the outlook over the next six months. Consumers expecting an upswing in business conditions increased from 14.1% to 16.8%. Those anticipating conditions to worsen declined from 14.5% to 13.5%.

The employment outlook was also more upbeat. Now, 13.8% of consumers expect more jobs to become available, up from 12.3%. Those expecting fewer jobs to become available declined from 22.9% to 19.9%. American families also are more upbeat about their incomes. Today, 24.6% of consumers look for their incomes to climb, up from 22.7% in April.

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