Skip to main content

Consumer confidence bounces back in May

Consumer confidence showed improvement in May after a decline in April.

The Conference Board reported Tuesday that its index rose to 83.0 from 81.7 the previous month. Bloomberg News said the level was the second-highest since 2008 as people became more optimistic about the economy and the labor market.

“Consumer confidence improved slightly in May as consumers assessed current conditions, in particular the labor market, more favorably,” The Conference Board director of economic indicators Lynn Franco said in a statement.

“Expectations regarding the short-term outlook for the economy, jobs and personal finances were also more upbeat. In fact, the percentage of consumers expecting their incomes to grow over the next six months is the highest since December 2007 (20.2 percent). Thus, despite last month’s decline, consumers’ confidence appears to be growing.”

Bloomberg said higher stock prices and home values are buoying some Americans. Broader employment gains that lead to stronger wage gains would help to further boost sentiment and lift consumer spending, which accounts for almost 70 percent of the economy.

“Rising home prices certainly are making households feel better, and higher net wealth with rising equity portfolios, those things are helping households feel healthier,” Joe LaVorgna, chief U.S. economist at Deutsche Bank Securities in New York, told Bloomberg. He correctly predicted the confidence reading. What’s more, “the labor market is better.”

The Conference Board said consumers’ assessment of current conditions improved in May. Those who said business conditions are “good” decreased to 21.1 percent from 22.2 percent, and those who said business conditions are “bad” declined to 24.1 percent from 24.8 percent.

Their assessment of the labor market was more favorable. Those who said jobs are “plentiful” rose to 14.1 percent from 13.0 percent and those who said jobs are “hard to get” decreased slightly, to 32.3 percent, from 32.8 percent.

Consumers’ expectations increased slightly in May. The percentage who expect business conditions to improve during the next six months edged up to 17.5 percent from 17.2 percent and those who expect business conditions to worsen decreased marginally, to 10.2 percent, from 10.5 percent.

Related

1_PULSE1

Inflation Stymies Boat Sales

Inventories of new and used boats are improving at the retail level but are still considered comparatively lean, according to the results of the monthly Pulse Report survey.

Norm

Ho, Ho, Ho, You Better Watch Out

It may be too early to decorate the showroom, but it’s not too early to hatch a marketing plan to profit from the holiday selling season.

IBEX

Industry reacts to IBEX cancelation

With Ian expected to hit Florida’s west coast as a major hurricane, the consensus among those who spoke with Trade Only Today say it was the correct decision.

1_ABYCELECTRIFICATION

Ready for a Revolution

Electrification has been an increasingly common buzzword in the marine industry, especially in the past four to five years.

1_MARINEMAX.BOD

MarineMax Makes Appointment to its Board

Mercedes Romero has expertise in global procurement and strategic planning, working with such companies as Procter & Gamble and Starbucks.

1_ PULSE.PING.1

DEALERS: Are Interest Rates Impacting Demand?

This month’s Pulse Report survey asks dealers whether interest rate increases are causing a downturn in boat sales. Take the survey here.

1_SPOTZERO

Spot Zero Announces Expansion

The Fort Lauderdale-based reverse osmosis systems manufacturer is adding a 20,000-square-foot production facility.

1_Seakeeper Ride 450_2023 Sportsman Open 232 Center Console

Seakeeper’s New System Targets Pitch

Seakeepeer, whose gyroscopic stabilizers set the marine industry standard for eliminating as much as 95 percent of a boat’s roll, is now turning its attention to eliminating pitch with their Seakeeper Ride system.

7_IMG_0254

Propeller Precision

Yamaha’s new $20 million foundry produces about 100,000 propellers a year