The president of the distributors of the ETF of Paceer ETF, Sean Ohara, discusses the reaction of the stock markets to pricing uncertainty in the morning with Maria.
WE Consumer confidence increased in May after five consecutive months of deterioration after a break in higher rate rates between the United States and China has strengthened optimism, although the concerns about prices increase prices and injured it to the economy.
The Conference Board reported on Tuesday that its consumer confidence index increased by 12.3 points to 98 in May, well above the modest increase to 87 which was projected by economists interviewed by Reuters.
About half of the responses of the consumer confidence survey were collected after May 12, when the Trump administration concluded an agreement for lower prices On Chinese imports from 145% to 30% for a period of 90 days, in exchange for China, reducing its tariffs from 125% to 20%.
“The rebound was already visible before the commercial agreement of May 12-China, but gained momentum thereafter,” said Stephanie Guichard, principal economist, global indicators at the Conference Board. “The monthly improvement was largely motivated by consumer expectations, because the three components of the expectations index – commercial conditions, employment prospects and future income – have increased from their April.”
Gas prices have reached a 4-year level before the Memorial Day weekend
Consumer confidence increased in May for the first time in five months. (Allen J. Schaben / Los Angeles Times via Getty Images) / Getty Images)
“Consumers were less pessimistic commercial conditions And the availability of jobs over the next six months and has found optimism concerning future income prospects. Consumer assessments in the current situation have also improved, “said Guichard.
However, she added that “although consumers are more positive about the current commercial conditions than last month, their assessment of current employment availability has weakened for the fifth consecutive month”.
The Conference Committee report revealed that the rebound in consumer confidence occurred in all age groups and all income groups, as well as in political affiliations – although it noted that the declins of previous months meant that the six -month mobile average of the index was still down.
Consumers have noted concerns about prices and inflation increasing prices. (Gabby Jones / Bloomberg via Getty Images / Getty Images)
The prices continued to appear in a good place in the writing responses of the Conference Board, which also included optimism commercial transactions.
“In particular, consumers have continued to express concerns about prices increasing prices and having negative impacts on the economy, but some have also expressed the hope that the announced and future trade agreements could support economic activity,” said the report.
“Although inflation and high prices have remained significant concern for consumers in May, there have also been mentions of the relaxation of inflation and the drop in gas prices,” he added.
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The report has shown that the average consumer Inflation expectations More than 12 months fell to 6.5% after raising 7% in April.
He also asked consumers a special question to know if they have changed their expenses and their financial behavior recently, with more than a third (36.7%) saying that they put money aside for future expenses. About a quarter of consumers said they operated savings to pay for goods and services (26.6%) and postponed major purchases (26%).
Reuters contributed to this report.