According to the report from RealClearMarkets (RCM) and TechnoMetrica Institute of Policy and Politics (TIPP), the US economic optimism index unexpectedly declined in May, recording the fourth monthly decline in a row. RCM/TIPP surveyed 1,435 adults from May 1 to May 3 for the May index.
The economic optimism index fell to 41.8 points from 43.2 points in April. Experts expected the index to rise to 44.1 points. An index value above 50 points indicates optimism, and below 50 points indicates pessimism. The index has remained below 50 points for 33 consecutive months.
The economic optimism index consists of three main sub-indices. They track views on the short-term prospects of the U.S. economy, personal finance prospects, and views on the effectiveness of government economic policy. In May, the US economic outlook index for the next 6 months fell to 35.7 from 38.8 in April. Meanwhile, the personal finance sub-index rose to 51.3 from 50.6 in April. As for the sub-index of confidence in federal economic policy, it fell to 38.5 from 40.3 in April.
The data also showed that the financial stress index rose to 66.1 from 65.0 in April. Values above 50 points reflect increasing stress. The last time the index was below 50 points was in February 2020 (48.1).