Confidence, Spending Up; Durables Spending Down

Two new economic reports on Tuesday showed a general improvement in attitudes and spending patterns of U.S. consumers, but also showed that factories making durable goods continue to face a slump in demand.

The implications are mixed for the trucking industry.

Since consumer sentiment drives future spending patterns, any upturn is good news about future demand for trucked freight shipments. But a drop in spending on durables clouds the outlook for general factory shipments.

The New York-based business research group called the Conference Board said its consumer confidence index for May rose to 115.5 from 109.9 in April. Confidence had been ebbing in recent months, in a worrisome sign for the economy.

The latest index gain topped economists’ forecasts, and since the group’s survey was taken before Congress passed the tax cut bill last weekend, it could easily be argued that current sentiment would be even more optimistic.

Also Tuesday, the Commerce Department reported that consumer spending rose 0.4% in April. However, the increases came in spending on services and goods that don’t last more than three years, while spending for big-ticket durables fell again.

Commerce said spending on nondurables such as food and clothes rose 0.7%, after a 0.3% drop in March, the Associated Press noted. Services spending gained 0.5%, down a bit from a 0.7% rise in March.

Spending on manufactured goods expected to last at least three years -- including motor vehicles and appliances -- fell 0.6% last month after a 0.7% drop in March.