US consumer confidence: Another upbeat report for spending in Q2- ING

James Knightley, Senior Economist at ING, point out that today retail sales and consumer confidence report bodes well for consumer spending in the second quarter of 2016.

Key Quotes:


“US University of Michigan consumer confidence for May has jumped to 95.8 from 89.0 relative to a consensus forecast of 89.5. The gains were led by a 9.9 jump in the expectations component to its highest level since June last year.”

“This all bodes well for consumer spending in 2Q16, particularly after the stronger than expected April retail sales report.”

“While many at the Fed are keen to tighten monetary policy further we still feel that June is perhaps a little too early given the softness in data seen earlier in the year. We instead continue to favour a 3Q rate hike.”