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The index of consumer confidence in America rallies to a maximum for 17 years in May
As follows from a report issued on Tuesday, the consumer confidence index in the United States managed to ascend in May.
As follows from the report of the research organization Conference Board, in May the US consumer confidence index edged up to 128.0 versus the experts' prediction for surge to about 128.2.
The indicator for April was updated downwards to about 125.6 in contrast with the original reading of 128.7.
The consumer confidence index actually reflects the attitude of consumers towards the current economic situation and also enables to get their forecast for the next six months. The value of this index attracts close attention of market experts due to the fact consumer spending accounts for up to 70% of American economic surge.
In May, the current situation index went up from 157.5 to 161.7, the index of expectations edged up from 104.3 to about 105.6.
Consumer confidence tacked on in May after a modest dive in April, as some financial analysts pointed out.
In addition to this, market experts noted that in May consumers' assessment of the current economic situation managed to ascend to a maximum for 17 years. The given outcome actually suggests that economic surge in the United States speeded up in the second quarter compared with the first three months of 2018.
Short-term forecasts of consumers have improved a bit and it indicates that economic surge in the nearer future won’t speed up, as some financial analysts explained.
In general, the level of consumer confidence still appears to be at one of the highest values for the whole history of its evaluation. It definitely indicates stable consumer spending in the United States in the short term, market experts pointed out.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
The US NFP report will come out on January 8 at 15:30 MT time.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.