Strong labour market boosts US consumer confidence
Yield on the benchmark 10-year note drops to its lowest level since October 2017
Washington — Consumer confidence jumped in May as households grew more upbeat about the labour market, suggesting the economy remained on solid ground despite signs that activity was slowing after being temporarily boosted by exports and a build-up of inventories. The surge in confidence reported by the Conference Board on Tuesday came despite an escalation in tensions in the 10-month trade war between the US and China, which sparked a sharp sell-off on Wall Street. It mirrors strength exhibited by another sentiment surveys in the middle of this month. Economists said the strong readings likely did not fully capture the impact of the trade standoff between Washington and Beijing. The cut off date for the Conference Board survey was on May 16. The US raised existing tariffs on $200bn in Chinese goods to 25% from 10% on May 10, prompting Beijing to retaliate with its own levies on American imports. “So there was at least some time for the recent escalation in the trade spat with China...
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