After six straight months of declines, consumer confidence inched upward for May, according to a monthly survey released today by RBC Capital Markets.
The latest RBC Cash Index, which measures consumer attitudes and spending by household, went up nearly 10 points for May, to 39. This is up from its previous all-time low of 29.5 in April.
Overall, the survey found respondents more positive about their future economic prospects, but still worried about job security, RBC said.
“Consumers are beginning to look beyond the current economic downturn, as evidenced by the increase in their expectations for the future,” said T.J. Marta, economic and fixed income strategist for RBC Capital Markets. “The fact that Americans’ perception of the jobs environment weakened is not inconsistent with the rebound in the overall index, as the job market tends to lag the economic cycle.”
Americans’ attitudes toward investing improved slightly in May, as the RBC Investments Index rose to 60.7, up more than four points from last month. Consumers reporting that the next month will be a good time to invest in the stock market held steady at 27%, compared to 28% in April. Confidence in real estate investment also held steady in May, the survey showed, with 37% citing the belief that the next 30 days will be a good time to buy real estate.
According to the survey, 32% of respondents believe their local economy will be weaker in the near future, which is down from 38% last month.
Attitudes on the job front were significantly less positive. Anxiety over future job losses increased in May, the index showed, with 26% of those surveyed reporting job loss is likely in the next six months, up from 20% in April. At 93.7, the RBC Jobs Index dropped to the lowest level since the index began in January 2002.