Americans' willingness to open their wallets shot to a seven-year high in April, but confidence in the US economy fell in May. US consumer spending jumped by 1% in April, the largest month-on-month gain since August 2009. Consumer spending makes up two-thirds of US economic activity. But in May, the consumer confidence index dipped to 92.6 from 94.7 in April, as Americans worried about the long-term outlook of the job market. "Consumers remain cautious about the outlook for business and labour market conditions.
On January 29, Starbucks reacted to President Trump's travel ban by issuing a statement that it would hire 10,000 refugees. This announcement has backfired with consumers in a big way. During that those few days, Starbucks saw its Consumer Happiness level go from its normally impressive 75% positive all the way down to 40% positive. That's right--six out of every 10 opinionated tweets about the company were negative: Throughout 2016, Consumer Happiness for Starbucks ranged 70-75%. This is the 7-day average, so that 66% does NOT include anything from the huge backlash immediately following the announcement.
U.S. consumer confidence slipped in April but remains at high levels. The Conference Board, a business research group, says its consumer confidence index registered 120.3 this month, down from 124.9 in March, which was the highest reading in 16 years. Americans' assessment of current conditions and their expectations for the future both dipped this month. Their outlook for the jobs market also dimmed. Still, consumers' spirits have risen sharply since the Nov. 8 election of President Donald Trump.