U.S. Consumer Comfort Index Declines for a Fourth Straight Week
Americans’ sentiment fell for a fourth straight week as still-rising gasoline prices drove buying climate lower.
(Bloomberg) -- Americans’ sentiment fell for a fourth straight week as still-rising gasoline prices drove a measure of the buying climate down by the most in eight months, the Bloomberg Consumer Comfort Index showed Thursday.
Highlights of Consumer Comfort (Week Ended May 12) |
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Key Takeaways
After reaching a 17-year high in mid-April, the weekly comfort index has stumbled 3.5 points as Americans’ pocketbooks get squeezed by the highest fuel prices since late 2014. Sentiment fell across most income groups and in three of four U.S. regions. Comfort was unchanged in the Midwest.
Nonetheless, the setback in confidence due to costlier gasoline fill-ups in recent weeks contrasts with the latest consumer spending data. Retail sales posted a broad-based gain in April as bigger after-tax paychecks helped compensate for the pinch from fuel prices.
In addition, the monthly index of economic expectations showed confidence is being underpinned by steady hiring, the lowest unemployment rate since 2000, and the boost from lower taxes. Some 36 percent of respondents said the economy is “getting better,” compared with the 26 percent who said the economy is “getting worse.” Optimism has held at or above 36 percent for four consecutive months, the longest stretch in 32 years of data.
Other Details
- Weekly comfort gauge for Americans with annual income below $50,000 fell to 39.7, a two-month low, from 41.5
- Index for those making more than $100,000 cooled to 75.7 from 76.3
- Republicans’ comfort exceeded that of Democrats by 29 points, second-biggest gap since 2007
- Interviews conducted Tuesday to Saturday, rather than customary Wednesday through Sunday, because of Mother’s Day
--With assistance from Jordan Yadoo
To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net.
To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Vince Golle
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