WASHNGTON (MNI) – American consumers have less confidence in the
U.S. economy in May than they did in April as the unemployment rate
remains stubbornly high, a report from Investor’s Business Daily and
TechnoMetrica said Tuesday.
The IBD/TIPP Economic Optimism Index fell 0.8 points to 48.5 in May
while the 6-month economic outlook index saw a 1.7 point decline to 50.4
and confidence in federal economic policies dropped 2.3 points to 38.7.
The personal financial outlook index, or how Americans feel about
their own finances in the next 6-months was the only index to improve,
climbing 1.5 points to 56.3.
“Consumer confidence declined as the high unemployment persists,”
TIPP President Raghavan Mayur said in statement. TIPP is a unit of
TechnoMetrica.
Mayur said a “wobbly” stock market also contributed to the weaker
May report, adding that according to a TIPP survey, 23% of households
have at least one member who is unemployed but looking for work —
equivalent to 30 million Americans.
“Declining confidence is a clear sign the economy is not hitting on
all cylinders,” Terry Jones, associate editor of Investor’s Business
Daily said in the same statement.
“With the European Union imploding and a lack of jobs and income
growth in the U.S., economic optimism is likely to remain on the weak
side until significant changes in the economic outlook become apparent,”
Jones added.
While IBD/TIPP economic optimism index was weaker on a
month-over-month basis, all of the indexes were stronger compared to May
of last year.
** MNI Washington Bureau: 202-371-2121 **
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