WASHINGTON (MarketWatch) — A gauge of U.S. consumer confidence declined for a third month, with gloomier views in May on present and future conditions, the Conference Board reported Tuesday.
The consumer-confidence index fell to 64.9 in May — the lowest level since January — from a revised 68.7 in April. A prior estimate for April pegged the level at 69.2, according to Conference Board, a membership and research group.
Economists polled by MarketWatch had expected a reading of 70 for May.
“Consumers were less positive about current business and labor-market conditions, and they were more pessimistic about the short-term outlook,” said Lynn Franco, director of economic indicators at the Conference Board.
While gas prices have fallen in recent weeks, consumers face a variety of depressing factors: lower stock prices, slowing job gains, fiscal worries and concerns over Europe. The confidence data suggest a moderating pace of economic growth in coming months, Franco said.
Generally when the economy is growing at a good clip, confidence readings are at least 90. See economic calendar.
The Conference Board’s present-situation gauge fell to 45.9 in May from 51.2 in April. Among respondents, 13.6% of consumers said business conditions are “good,” down from 15.5% in April. Those saying conditions are “bad” rose to 34.3% from 33.2%. The rest said conditions are “normal.”
Meanwhile, the expectations barometer declined to 77.6 from 80.4. Regarding their expectations for six months, 16.6% of consumers in May said business conditions will be “better,” down from 18.5% in April. Those saying conditions will be “worse” declined to 13.1% from 14.2%. The rest said conditions will be the “same.”
Those with plans to buy an automobile within six months rose to 10.4% in May from 9.9% in April, and those planning to buy major appliances rose to 45.3% from 44.6%. Those with plans to buy a home ticked down to 4.4% from 4.5%.
Elsewhere Tuesday, S&P/Case-Shiller reported that U.S. home prices were unchanged in March, but remained at a post-recession low. Read more about home prices.
Ruth Mantell is a MarketWatch reporter based in Washington.
