Consumer Confidence Ticks Up in May After Steep Decline During Coronavirus Shutdowns – By Claire Hansen (US News) / May 26 2020
Consumer confidence rose slightly in May as all 50 states began reopening nonessential businesses.
Consumer confidence edged up in May as all 50 states began reopening businesses shuttered during coronavirus-related shutdowns that caused the index to plunge in March and April.
The figure, which gauges Americans’ optimism about the economy, rose to 86.6 in May, up from a revised 85.7 in April, The Conference Board said Tuesday. The stabilization comes amid phased economic reopenings around the country that have allowed certain nonessential businesses to resume operations. Consumer confidence stood at 132.6 in February before the effects of the pandemic were widely felt in the United States.
“Following two months of rapid decline, the free-fall in Confidence stopped in May,” said Lynn Franco, senior director of economic indicators at The Conference Board. “Short-term expectations moderately increased as the gradual re-opening of the economy helped improve consumers’ spirits. However, consumers remain concerned about their financial prospects.”
Americans’ view of the present economic situation declined slightly in May, despite the small rise in overall confidence. The consumer confidence index is closely monitored because it can predict future spending.
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