US: Consumer Confidence rose above expectations - Wells Fargo

Consumer confidence measured by the Conference Board rose to 134.1 in May above expectations. Analysts at Wells Fargo, point out that consumers’ take on the present situation rose to 175.2, higher than at any prior point in this cycle and added that jobs have not been this plentiful since 2001, according to consumers.

Key Quotes: 

“The initial cut-off for responses was the 16th of May, so there was at least some time for the recent escalation in the trade spat with China to factor in. But at this stage, consumers are nonplussed.”

“The most immediate potential hit to spending from the trade war is apt to occur amid a diminished wealth effect should the stock market experience a steep and sustained selloff. With most equity indexes down less than 4%, we are not there yet.”

“The proportion of consumers who think jobs are “hard to get” fell to 10.9, less than a point away from the all-time low of 9.6 reached in July 2000. With jobless claims figures testing lows not seen in 50 years, there is no obvious sign of a turn in prospects for jobs.”