Business

Consumer confidence index posts huge jumps in May, defiant trade woes




In this 21st of August 2015, people shop at the CityTarget store in Boston. Falling stock prices have taken a toll on US consumer confidence, although there are signs that the downturn may be temporary. The University of Michigan says consumer sentiment index fell to 91.9 Aug. 2014 from 93.1 in July. The index is still up by 11.4 per cent from a year ago. (AP Photo / Michael Dwyer)

Consumers remain optimistic in the face of a volatile market and a broader trade dispute between the US and China, according to new data from The Conference Board, which unexpectedly rose in May.

The Consumer Authority's Consumer Rights Index, a key statistics for consumers' willingness to keep spending, jumped to 134.1, up from April's reading of 129.2. A consensus forecast by economists asked by Bloomberg that the index rose to 130, up from the previous 129.2 reading.

"Consumer confidence showed another gain in May, and is now returning to levels seen last year, when the index fluctuates near 18-year highs," said Lynn Franco, senior director of economic indicators at the conference board.

While a thriving market for jobs helped strengthen the prospect, consumer sentiment regarding their income prospects was mixed, Franco says.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Earlier this month, & nbsp; One own sentiment index from Reuters and the University of Michigan showed that sentiment increased to a 15-year high, but much of the data was taken before the US and China hit a new tariff gap on each other's imports. The month showed a separate sentiment index from Reuters and the University of Michigan feeling rising to a 15-year high, but much of the data was taken before the US and China hit a new round of tariffs on each other's imports.

All told, it suggests that consumers still are inclined to continue opening their wallets in the face of economy pressures.

<p class = "canvas-atom canvas-text Mb em) Mb (0) – sm Mt (0.8em) – sm" type = " text "content =" The trade war has made for volatile trading on Wall Street & nbsp; Global growth likes. A number of companies and economists also think of $ 200 billion of tariffs on Chinese goods – and the $ 60 billion in Beijing is ready to turn on US goods in retaliation – will begin to fall to the consumer. "data-reactid =" 29 "> The trade war has made for volatile trading on Wall Street and raised concerns about global growth suffering. A number of companies and economists also think of $ 200 billion of tariffs on Chinese goods – and $ 60 billion in Beijing is ready to turn on American goods in retaliation – will begin to fall to the consumer.

<p class = "canvas- Atom text-text Mb (1.0em) Mb (0) – sm Mt (0.8em ) – sm "type =" text "content =" Walmart ( WMT ), the world's largest retailer earlier this month, tariffs will lead to higher prices for customers. "data-reactid =" 30 "> Walmart (WMT), the world's largest retailer, said earlier this month that tariffs would lead to higher prices for customers.

" We will continue to do everything we can to keep prices low. Higher rates, however, will lead to increased prices for our customers, said CFO Brett Biggs to reporters on a conversation.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The conference supervision data was also published in the shadow of retail sales from April , which was far weaker than expected by Wall Street, gas prices, which have fluctuated ahead of the summer-driven season may also be a wild card going forward. "data-reactid =" 32 "> The conference supervisor's data was also released in the shadow of retail sales in April, which was far weaker than Wall Street expected. Gas prices, which have fluctuated during the summer season, may also be a wild card going forward.

"Consumers expect the economy to continue to grow at a steady pace in the short term, and despite weak retail sales in April, these high levels of confidence suggest there is no significant decline in spending over the coming months," Franco

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt 0.8em) – sm" type = "text" content = " Javier is the editor of Yahoo Finance. Follow Javier on Twitter: @TeflonGeek "data-reactid =" 35 "> ] Javier is the editor of Yahoo Finance. Follow Javier on Twitter: @TeflonGeek

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