A report released by the Conference Board on Tuesday showed a modest decrease in U.S. consumer confidence in the month of May.
The Conference Board said its consumer confidence index dipped to 106.4 in May from an upwardly revised 108.6 in April.
Economists had expected the consumer confidence index to drop to 104.0 from the 107.3 originally reported for the previous month.
The report showed the present situation index fell to 149.6 in May from 152.9 in April, while the expectations index declined to 77.5 from 79.0.
"The decline in the Present Situation Index was driven solely by a perceived softening in labor market conditions," said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. By contrast, views of current business conditions-which tend to move ahead of trends in jobs-improved.
"Overall, the Present Situation Index remains at strong levels, suggesting growth did not contract further in Q2," she added. "That said, with the Expectations Index weakening further, consumers also do not foresee the economy picking up steam in the months ahead."
