U.S. consumer less optimistic in May

Consumers in the world's largest economy are less optimistic in May, than a month earlier, even despite some improvement in the economy. A gauge of consumers' mood, compiled by IBD/TIPP, declined by 1.1 points, or 2.4%, in May, posting 45.1 compared with 46.2 in April.  The index is now 2.1 points below its 12-month average of 47.2, or 0.7 points above its reading of 44.4 in December 2007, when the U.S. economy entered the recession. The reading remains below the 50 threshold since October 2009, adding to signs that still there are problems in the economy and additional stimulus may be needed. 

"A majority of Americans continue to believe that the U.S. is in a recession.  While 47% feel the economy is improving, 49% think the economy is not improving. Twenty-three percent of households have at least one person looking for full-time employment," said Raghavan Mayur, president of TIPP, a unit of TechnoMetrica Market Intelligence, IBD's polling partner.

"The economy has failed to ignite in the five years since the financial crisis," said Terry Jones, associate editor of Investor's Business Daily. "While Americans are more confident about their own finances, they're much less confident about the future – and about the government's ability to get the economy back on track."