US consumer confidence recovers; inflation worries persist
U.S. consumer confidence unexpectedly improved in May after deteriorating for three straight months amid optimism about the labor market, but worries about inflation persisted and many households expected higher interest rates over the next year.
“Continued positive job growth, rising wages, an ebullient stock market and healthy household balance sheets will keep consumers spending despite elevated prices and borrowing costs,” said Oren Klachkin, financial market economist at Nationwide.
The improvement was across all age groups, with consumers making annual incomes over $100,000 posting the largest increase in confidence.
On a six-month moving average basis, confidence remained highest among the under-35 age cohort and those with annual incomes of more than $100,000.