Consumer Confidence Surprises in May

Consumer Confidence Surprises in May

( – As states start reopening their doors for business, Americans are feeling more confident in the US economy than experts predicted. In May, the consumer confidence surprisingly grew almost a full point from 85.7 in April to 86.6 in May. Economists were predicting consumer confidence to shrink to 82.3.

While consumer confidence is improving, Americans remain concerned about their personal situations. Unemployment sitting at 14.7% and the potential of a second wave of COVID-19 are clouds hanging over the economy’s future and people’s financial well-being. Another threat looming is inflation. As the government pumps trillions of dollars into the economy, it may devalue the dollar and make goods and services more expensive.

Overall, consumers are optimistic over the short-term. Over the next six months, 43.3% believe business conditions will improve. That’s up from 39.8% in April.

To help ensure the economy doesn’t derail, Congress is considering another relief package. Democrats passed a bill two weeks ago, though the Senate says it has no chance of passing. It is, however, expected that another round of direct payments will happen.

Stay tuned as the relief package negotiations pick up steam between the House and Senate over the next few weeks. It’ll be interesting to see the impact it has.

~Here’s to Your Prosperity!

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