U.S. consumer confidence eased modestly in May as persistently high inflation and rising interest rates force Americans to become more cautious about buying big ticket items, including motor vehicles and houses, which could curtail economic growth. The survey from the Conference Board on Tuesday also showed consumers’ perceptions of the labor market softening a bit this month. Though the drop in confidence was small, it suggested that the Federal Reserve’s aggressive monetary policy actions to slow demand were starting to have an impact. “We can never underestimate the U.S. consumer,” said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto. “But plans to pull back on purchases, and become a little more cautious, is something that the Federal Reserve would welcome as it aims to cool demand.” The Conference Board’s consumer confidence index slipped to a reading of 106.4 this month. Data […]

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