US consumer confidence falls slightly in May

ANKARA

US consumer confidence fell slightly in May, but managed to come above market estimate, according to data released Tuesday by the Conference Board.

The Consumer Confidence Index, a leading indicator to predict consumer spending and economic activity, dropped 2.2 points to 106.4 in May, down from 108.6 in April.

The market consensus for the index was to come in at 103.9.

Lynn Franco, the senior director of economic indicators at the Conference Board, said in a statement that American consumers "do not foresee the economy picking up steam in the months ahead," and added: "They do expect labor market conditions to remain relatively strong, which should continue to support confidence in the short run."

"Indeed, inflation remains top of mind for consumers, with their inflation expectations in May virtually unchanged from April’s elevated levels. Looking ahead, expect surging prices and additional interest rate hikes to pose continued downside risks to consumer spending this year," Franco added.

The Present Situation Index, based on consumers’ assessment of current business and labor market conditions, fell to 149.6 in May, from 152.9 in April.

The Expectations Index, based on consumers’ short-term outlook for income, business, and labor market conditions, decreased to 77.5, from 79.0, during that period.