The Conference Board reported a stronger than expected consumer confidence reading at 102.0 versus 96.0 for May while the previous month's reading enjoyed an upgrade from 97.0 to 97.5.
Components of the May report revealed that the Current Conditions Index, which is based on consumers' assessment of current business and labor market conditions, rose for the first time since January.
Meanwhile, a measure of expectations, or consumers' short-term expectations, for income, business and labor market conditions jumped by the most since July.
- May Consumer Confidence: 102.0 (96.0 expected, 97.5 previous)
- May Expectations Index: 74.6 (previous 68.8)
- May Current Situation Index: 143.1 (previous 140.6)
Link to the Conference Board's Consumer Confidence Survey
According to Dana M. Peterson, chief economist at The Conference Board:
“(T)he strong labor market continued to reinforce consumers' overall assessment of the current situation…fewer consumers expected a deterioration in future business conditions, job availability, and income, resulting in an increase in the Expectations Index.
However, the overall confidence measure has remained within the relatively narrow range it has hovered in for more than two years.
Market reactions
US dollar against major currencies: 5 minutes
Overlay of the US dollar against major currencies Chart by TradingView
The US dollar was trending lower ahead of the CB Consumer Confidence Index, then rising just before the actual numbers.
Stronger than expected key results and fundamental components allowed the US dollar to remain in the green zone against its peers.
A bit of sideways price action followed in the next few hours, before a bit more bullish momentum kicked in and lifted the greenback across the board, posting its strongest gains against the New Zealand dollar and the euro.
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