2012.05.08 16:14:46 IBD/TIPP Economic Index Declines To 48.5 In May

DOW JONES NEWSWIRES U.S. consumers grew slightly more pessimistic about the economy in May, though they were more optimistic about their personal financial outlooks, according to a report released Tuesday. The IBD/TIPP Economic Index, compiled by Investor's Business Daily and TIPP, a unit of TechnoMetrica Market Intelligence, was down 0.8 point to 48.5 in May from 49.3 in April. "Consumer confidence declined as the high unemployment persists," said Raghavan Mayur, president of TIPP. "The wobbly stock market is also not helping." Still, the index is 4.5 points above its 12-month average of 44 and 4.1 points above its reading of 44.4 in December 2007, when the economy entered into the recession. The all-time average for the index is 49.9. Index readings above 50 indicate optimism; below 50 indicate pessimism. The six-month economic outlook, a measure of how consumers feel about the economy's prospects over the next six months, declined 1.7 points, or 3.3%, to 50.4 points. That compares with 32.1 points in December of 2007. The personal-financial outlook, a gauge of how Americans feel about their personal finances in the next six months, improved 1.5 points, or 2.7%, to 56.3 points. Meanwhile, respondents were more pessimistic about federal-economic policies, with a gauge of how government economic policies are working dropping 2.3 points, or 5.6%, to reach 38.7 points. Five of the 21 demographic groups tracked by the IBD/TIPP index were in positive territory in May, while 6 groups increased on the index. -By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com (END) Dow Jones Newswires May 08, 2012 10:14 ET (14:14 GMT)