Consumer Confidence Gets A BIG Boost As Americans Hopeful for Post-Coronavirus Economy

( The Chinese coronavirus has certainly done a number on the United States economy, but new figures show that consumer confidence is increasing as people are increasingly optimistic about America’s chances of bouncing back from this temporary recession. As we enter the summer and lockdown measures are starting to be lifted across the country, Americans are beginning to see a light at the end of the tunnel.

According to The Conference Board on Tuesday, its confidence index increased and peaked at 86.6 for May, an increase over April’s 85.7 in April. This was in line of expectations of major economic forecasters and shows an increase in confidence after months of uncertainty.

Senior Director of Economic Indicators for The Conference Board, Lynn Franco, explained how the “free-fall in Confidence stopped in May” following “two months of rapid decline.”

In full context, confidence is still low. It’s an almost six-year-low, in fact, given the huge impact that the Wuhan virus has had on the American economy. While some states have allowed businesses to start reopening, many are stuck with capacity restrictions that limit the amount of income that can be generated in a day and some still cannot function properly at all. Some states, particularly those run by Democratic governors, are still in full lockdown.

Democratic Governor Gavin Newsom of California committed earlier in May to a three-month extension of current lockdown orders, meaning businesses throughout his state are unlikely to be up and running until the end of summer.

According to the May survey, 43.3% of consumers have a positive outline about the economy over the next six months – an increase from 39.8% last month. There was also a decrease in the percentage of people who expect economic conditions for businesses to get worse in coming months, declining from 25.1% to 21.4%.

Lynn Franco also explained how “short-term expectations moderately increased as the gradual re-opening of the economy helped improve consumers’ spirits.”

“However, consumers remain concerned about their financial prospects,” she said. And that’s understandable. Job losses have been substantial with 36 million Americans left unemployed following the lockdown measures put in place all over the country.

The consumer outlook for the labor market wasn’t positive but it wasn’t negative either. The percentage of people who expected more jobs in the coming months declined marginally from 41.2% to 39.3£. However, those who anticipate fewer jobs also dropped from 21.2% to 20.2%.

All in all, it’s a good sign…now the economy just needs to catch up!