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The numbers: Asurvey of consumer confidence slipped in May to a six-month low of 102.3. Americans remained gloomy about the economy and said jobs were getting harder to find.
The closely followed index dipped 1.4 points from a revised 103.7 in the prior month, the Conference Board said Tuesday. The level of confidence in May was the lowest since last November.
Consumer confidence tends to signal whether the economy is getting better or worse. The index remains well below the levels associated with a healthy economy.
Economists polled by The Wall Street Journal had forecast the index to register 99.
Key details: A confidence gauge that looks ahead six months edged down to 71.5 in April from 71.7.
Constant readings below 80 often signal a recession within the next year, the board has said. The expectations index has been below that level in every month except for one in the last 15 months.
A measure that looks at how consumers feel about the economy right now declined to 148.6 from 151.8.
Inflation is not expected to decline much over the next year. Consumers think prices will rise 6.1% in the next 12 months vs. 6.2% in the April survey.
Despite all the worry and angst about high inflation, lots of consumers still say the plan to buy a house, car or major appliance soon.
Big picture: Americans say they are very worried about the economy, but they are not exactly acting like it. They are dining out, traveling and flying in large numbers and still spending plenty of money on new cars.
Yet persistently high inflation and rising interest rates threaten to slow the economy further and eventually tip the U.S. into recession, economists say.
“”Consumers’ view of current conditions became somewhat less upbeat while their expectations remained gloomy,” said Ataman Ozyildirim, senior director of economics at the board. “Their assessment of current employment conditions saw the most significant deterioration.”
Market reaction: The Dow Jones Industrial Average
DJIA,
fell, but the S&P 500
SPX,
rose, in Tuesday trades.
