Consumer confidence ticks down in May, but remains strong

Consumer confidence ticked down slightly in May but remains nearly as high as its been since the pandemic began.

The Conference Board reported Tuesday that its consumer confidence index fell to 117.2 from April's 117.5 reading.

The present situation index, based on consumers assessment of current business and labor market conditions, rose to 144.3 from 131.9. The expectations index, based on consumers' short-term views for income, business and the job market, fell to 99.1 in May, from 107.9 in April.

Consumers expectations for the future may be less bright because the tailwind from Americans spending their $1,400 stimulus checks may be fading. Earlier this month, the Commerce Department reported that retail sales in the U.S. flattened out in April after soaring in March, when many Americans received those government checks and boosted their spending.

Economists have said that rising confidence should bolster overall economic growth as consumers, who account for 70% of economic activity, spend more as lockdown restrictions are eased or abandoned altogether in many places.