Inflation Concerns Lead To Lower Consumer Confidence In May: Report

NEW YORK - Consumer confidence slid in May as consumers turned more pessimistic on the outlook for the labor market and inflation worries rose, according to a private sector report released on Tuesday.

The Conference Board, an industry group, said its index of consumer attitudes fell to 60.8 from a revised 66.0 in April. The reading was below economists' forecasts for 66.5.

April was originally reported as 65.4. The expectations index tumbled to 75.2 from 83.2, while the present situation index edged down to 39.3 from 40.2.

Consumers' labor market assessment was less favorable. The proportion of those who said jobs were hard to get rose to 43.9 percent from 42.4 percent the month before, although the "jobs plentiful" category also rose to 5.6 percent from 5.1 percent.

Consumers were also more negative on their view of the labor market for the next six months. Those expecting more jobs in the coming months decreased to 15.9 percent from 17.8 percent, and those expecting fewer jobs rose to 20.8 percent from 18.7 percent.

Consumers' expectations for inflation in the coming 12 months rose to 6.6 from 6.3 percent.

(Reporting by Leah Schnurr; Editing by Padraic Cassidy)

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Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[MikeyJaii]

10:34 PM on 05/31/2011

Consumer spending depends on consumer confidence and that depends on people have jobs. And the job market is a total disaster. Plain and simple.

[Don Logan]

06:07 PM on 05/31/2011

Obamanomics is a disaster.

[Butquestioning]

05:30 PM on 05/31/2011

We cannot keep taking money out of the economy, whether by consumer spending cuts or cuts in government spending and expect jobs and the confidence of the people to improve. We have a problem with demand and until that is corrected, we will contnue to have low employment and falling home values - sinking the economy in the hole even deeper.

For some reason, we seem to have bought into the illogical solution to our problems of more tax cuts and spending cuts, ignoring that the two are opposing ideas offered to provide the same results. Tax cuts are supposed to put money into the economy to increase demand and then we say to cut spending which takes money out of the economy...consumer spending cuts created the unemployment problems, cutting spending at the government level will do the same. It isn't like this is a new concept, It is a basic economic principle. We just have politician that want to champion their own causes and have little concern for our workers and middle class people...

[kenhamlett]

04:27 PM on 05/31/2011

We Democrats need to take these numbers seriously, as do our leaders. We are in the run-up to the 2012 whether we believe it to be true or not. Impressions are being formed and opinions developed. This is happening with three continuing wars, rising consumer prices, devastating unemployment, and this morning's announcement that the housing sector has entered a double dip (the government spokesperson's words, not mine). People are finding it hard to find work, and those with jobs are finding it increasingly difficult to afford the cost of travelling to and from their jobs. This is a situation that needs to be addressed decisively and it needs to be addressed now -- not with words a few weeks before the next election. We need to address the weakness of the dollar, the need for job creation programs, and the imploding housing situation. I want 2012 to be a better year than 2010 for Democrats, and we need to act to make sure it is.

[Butquestioning]

05:15 PM on 05/31/2011

When so many have bought into the argument for spending cuts rather that stimulus, we will have a long uphill battle to make any positive changes to the economy. We have allowed the discussion to be directed / established by the Republicans and they offer only a continuation of Reaganomics - the Trickle Down economic approach that has failed for 30 years.

Until we take control of the message and start to work on real solutions, we will stay in this mess. It is very similar to the situation that occured in the late 1930's when the Republicans were able to convince people that government spending had to be cut and the economy went back into the Depression, reversing a strong GDP growth up to that point.

The only possible salvation for the Dems is that the Republicans are making it easy to vote against them with the horrific social and worker program cuts. Maybe, despite the lack of a positive direction, the Democrats will be successful and win back the House and gain a filibuster proof Senate...or we can at least hope.

But the reality is that we do need a different direction, and not the one that the Republicans have been pushing since Reagan. Tax cuts are not the solution when they only benefit the few...and Trickle Down is just a way of giving more to the corporations that already have huge stock piles of cash on their books.

[Toolmon]

02:33 PM on 05/31/2011

Once again...kudos to Obama and his liberal cohorts, that have brought this country to this sad state of affairs.

[Trepasky]

03:03 PM on 05/31/2011

Wow and in less than 3 years.

I suppose GW doubling the debt and having only 1.1 million jobs created during his 8 years didn't contribute to the 'problem'?

BTW we needed about 1.2million jobs a year (about 10million during his 8 years) just to keep up with population growth.

[jdevans]

03:39 PM on 05/31/2011

There conservatives go again! Trying to rewrite history. The recession started during the Bush administration.

[Saxton]

03:58 PM on 05/31/2011

Like a fish needs water, Republicans need their lies.