After three straight months of decline, The Conference Board’s Consumer Confidence Index inched upward for the month, increasing to 102 compared with 97.5 in April. This is the first increase since January.
The strong job market is partially responsible for the climb, said Chief Economist Dana Peterson in a release. Unemployment is currently under 4%, employers continue to create jobs, and the number of jobs available exceeds those who are unemployed and seeking work. Survey participants also feel optimistic about the stock market, with nearly half expecting stock prices to go up over the next year.
However, inflation is still a concern. Last month, consumers voiced that prices, especially for food and groceries, had the No. 1 impact on their view of the economy, Peterson said.
The Federal Reserve Bank of New York also released survey data about consumer expectations for public policies such as unemployment benefits, taxes and housing assistance. It found that more people are upbeat about the potential for a minimum wage increase and welfare and unemployment benefits.
