The confidence levels of consumers in the United States actually feel during the month of May, which was not expected. In fact, consume confidence fell to its lowest level within the past four months, showing that the optimism amongst consumers is simply not there, most likely due to the problems that these consumers are still facing because of the sluggish job market. During the month of May, the consume confidence level was at about 64.9 percent, which was less than the 68.7 percent that it was at during the month of April. The prices of homes also dropped at a rather slow pace.
Many Americans believe that they will not have nearly as many job opportunities as needed and the percentage of these people with lower expectations has actually increases since the month of November, which also means consumers will more than likely limit their spending and spend less on different products. The decline in gas prices, which was only a decline of about 30 cents, did not really seem to do much justice simply because there needs to be more progress made within the job market.
One senior economist for Moody’s Analytics Inco, Aaron Smith, says that lower gas prices are not really fixing the problem. He says that progress is being made within the labor market but the progress has been so slow, people are still suffering and consumers are still weary, afraid that the progress will come to a halt. In the meantime, the prices of homes within 20 cities in the United States fell by 2.6 percent within the 12 months ending from the month of March, which was quite a small decrease. In fact, it was the smallest decrease made since December of 2010.
Those who are building homes say that this has been an improved season, the most improved within the past seven years, more specifically because the mortgage rates are much lower than they once were. However, the market is still dealing with some serious challenges. The chief economist for Raymond James & Associates Inc., Scott Brown, said that it is a gradual process and that there is not going to be a huge housing recovery in full effect because those types of things simply take time.
With fewer jobs available, less people are feeling confident about buying and are trying to save their money instead. Fewer people expect to see their income rise within the next six months as well. Income expectations of consumes are lower than they were during the year of 2011. Some employers have increased their payrolls and the jobless rate for the nation has dropped but the job market is still sluggish and the unemployment rate is still higher than it should be, with many people out of work and unable to find employment.Consumer Confidence Low in May by Harrison Barnes