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U.S. consumer confidence in economic prospects weakens business and economic news

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Americans still feel good about the current economic situation in the United States, but are not satisfied with the short-term prospects.

Americans still feel good about the current economic situation in the United States, but are not satisfied with the short-term prospects.

The latest survey by The Conference Board showed that its consumer confidence index dropped from 117.5, the peak of the coronavirus pandemic in April, to 117.2 in May.

The status quo index, which measures consumers’ assessment of current business and labor market conditions, soared this month from 131.9 in April to 144.3 this month.

However, the expectation index, which measures attitudes toward employment, income, and short-term prospects for businesses, fell from 107.9 in May to 99.1 in May.

Lynn Franco, senior director of economic indicators at The Conference Board, said: “Consumers’ assessment of current conditions has improved, indicating that economic growth remains strong in the second quarter.” “However, due to the expected slowdown in growth and weak labor market conditions in the coming months , Consumers’ short-term optimism has declined.”

Consumers were less enthusiastic about income prospects in May-Franco said this development may reflect the increase in inflation expectations and the weakening effect of the $1,400 government stimulus check that most Americans received earlier this year. .

Consumer confidence is a key component of the health of the U.S. economy, as consumer spending drives about two-thirds of growth-Americans are optimistic about job prospects and the overall economy, so they are more likely to spend money on goods and services .

U.S. economy Annual growth rate of 6.4% In the first three months of this year, with the accelerated vaccination of the coronavirus, the rollback of pandemic restrictions, and the massive coronavirus relief provided by the government, consumers have rejuvenated.

The latest data from the Atlanta Federal Reserve GDPNow tracker shows that the US economy grew at an annual rate of 10.1% in the second quarter.



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