US consumer confidence unexpectedly deteriorated further in May, a survey conducted monthly by The Conference Board, a private research group based in New York, showed. The index now stands at 64.9, compared with a revised reading of 68.7 in April (original value: 69.2). The consensus of 70 economists in a Bloomberg poll had predicted a modest improvement to 69.6 points.
“Consumers were less positive about current business and labor market conditions, and they were more pessimistic about the short-term outlook,” commented Lynn Franco, director of Economic Indicators at The Conference Board. “However, consumers were more upbeat about their income prospects, which should help sustain spending. Taken together, the retreat in the Present Situation Index and softening in consumer expectations suggest that the pace of economic growth in the months ahead may moderate,” she added.