Consumers in the US are not confident in economic prospects | Business and Financial Issues

Americans are still feeling good about what is happening in the United States economy, but not thinking for a moment.

Americans are still feeling good about what is happening in the United States economy, but not thinking for a moment.

A recent study by The Conference Board showed that the Consumer Confidence Index dropped slightly to 117.2 in May since April 117.5 coronavirus epidemic.

The Present Situation Index, which measures consumer performance status in the current real estate market, rose 144.3 this month, up from 131.9 in April.

But the Expectations Index, which tests future futures for employment, finance and business, fell 99.1 in May, up from 107.9 last month.

“Consumer perceptions of the current situation have changed, and we can see that economic growth remains stable in Q2,” said Lynn Franco, chief financial officer at The Conference Board. “However, the long-term prospects for consumers have diminished, given the expectation that economic growth will slow down in the labor market over the next few months.”

Consumers were not impressed by the amount of money they were earning in May – a development that Franco said could reflect inflation and a reduction in the $ 1,400 U.S. government received earlier this year.

Consumer confidence is a key factor in U.S. economic health because consumer spending drives one-third of growth – and Americans who are reluctant to talk about employment prospects with their entire economy are more likely to produce goods and services.

US steel grew at 6.4% annual In the first three months of this year, anti-coronavirus vaccines, epidemic barriers and government-sponsored charities also encouraged consumers.

A recent reading from the GDPNow tracker of the Atlanta Federal Reserve sees the US economy grow at an annual rate of 10.1% in the second quarter.