WASHINGTON, DC ‐ The Refinitiv/Ipsos Primary Consumer Sentiment Index from May 2021 is at 62.1. Fielded from April 23 ‐ May 7, 2021, this month’s index marks a 3.1 point increase from April.
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Consumer Confidence in May 2021
The Consumer Sentiment Index is at its highest reading since February 2020 (62.9), surpassing its reading in March 2020 (60.1) for the first time. Strong growth across all sub‐indices continues this month, with gains of greater than 4 points in the Current and Investment indices.
Following a gain of 4.2 points from April, the Current Index now reads at 55.4. This is its third month experiencing an increase greater than 4 points, with a total three‐month growth of 14.1 points. This month marks the Current Index's highest level since January 2020 (56.4). The Investment Index, at 57.7, is up 4.3 points from last month. Like the Current Index, this is the third month of significant gains. The Investment Index has increased 13 points since March. In fact, this month's consumer confidence reading soars passed levels seen directly before the pandemic and is at its highest since May 2018 (58.7).
With another month of significant upward movement, the Expectations Index (68.8) is up 1.9 points. It sits 5.3 points above its prepandemic reading in March 2020 and is now the highest reading for the index since two years ago (May 2018: 68.8).
At 69.7, the Jobs Index grows by 1.7 points and is now in line with its March 2020 reading for the first time since nationwide shutdowns.
"Continuing the trend of growing optimism in American consumer confidence seen since the beginning of 2021, the Consumer Sentiment Index is at its highest reading since February 2020," Chris Jackson of Ipsos says. “Significant gains are also displayed across all sub‐indices. In particular, the Current and Investment indices are each up by more than 4 points, and the Expectations Index is at its highest level in two years. Altogether, it appears that American confidence is high, and future predictions are hopeful.”
Jharonne Martis, Director of Consumer Research at Refinitiv, said, “Likewise, this sentiment is reflected among analysts polled by Refinitiv which have been raising their earnings estimates for 38% of the companies in the Refinitiv retail earnings index, including the reopening names. This suggests that consumers are feeling better about spending their discretionary income."
Current
The PCSI Current Condition Index currently reads at 55.4. After gaining 4.2 points from April, this month marks a new pandemic high and sits just below its January 2020 reading of 56.4. In fact, over the previous three months, the Current Index has gained more than 14 points. The index is now 2 points higher than where it stood pre‐pandemic lockdowns in March 2020.
Expectations
The PCSI Expectations Index is up 1.9 points from last month, its third month of significant gains (+7.7 points since March). Reading at 68.8, this month marks a new pandemic‐high. It currently sits 5.3 points above its March 2020 reading and is the index's highest in two years (May 2018: 68.8).
Investment
This month, the PCSI Investment Index reads at 57.7 after gaining 4.3 points from April. This is a new pandemic high for the measure, marking the third month of continued gains (+13 points since March). It is now 3.1 points above its reading in March 2020 and is the index's highest reading since May 2018 (58.7).
Jobs
The Jobs Index (69.7) continues to display gains for the fifth month in a row, up 1.7 points from last month and 14.7 points from December 2020. For the first time since the start of the pandemic, this month's reading is in line with its level in March 2020 (69.7).
