The Conference Board printed a stronger than expected consumer confidence reading at 102.0 versus 96.0 for May while the previous month reading enjoyed an upgrade from 97.0 to 97.5.
Components of the May report revealed that the index of present conditions, which is based consumers’ assessment of current business and labor market conditions, climbed for the first time since January.
Meanwhile, the measure of expectations or consumers’ short-term outlook for income, business, and labor market conditions jumped by the most since July.
- May CB Consumer Confidence Index: 102.0 (96.0 expected, 97.5 previous)
- May Expectations Index: 74.6 (68.8 previous)
- May Present Situation Index: 143.1 (140.6 previous)
Link to The Conference Board Consumer May Confidence Survey
According to Dana M. Peterson, Chief Economist at The Conference Board:
“[T]he strong labor market continued to bolster consumers’ overall assessment of the present situation… Fewer consumers expected deterioration in future business conditions, job availability, and income, resulting in an increase in the Expectation Index.
Nonetheless, the overall confidence gauge remained within the relatively narrow range it has been hovering in for more than two years.”
Market Reactions
U.S. dollar vs. Major Currencies: 5-min
Overlay of USD vs. Major Currencies Chart by TradingView
The Greenback was cruising lower leading up to the CB consumer confidence index release then pulled higher just before the actual numbers were printed.
Stronger than expected headline results and underlying components allowed USD to stay in the green against its peers.
A bit of sideways price action followed in the next few hours, before a bit more bullish momentum kicked in and lifted the U.S. currency across the board, chalking up its strongest gains versus the Kiwi and euro.
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