Consumer Confidence Slips in May, but No Big Slowdown Seen : Indicators: Conference Board index suggests that underlying optimism remains at healthy levels.

NEW YORK —  Consumer faith in the economy weakened in May as Americans turned slightly less optimistic about employment prospects, the Conference Board reported Tuesday.

But the business research group’s monthly report on consumer sentiment also suggests that underlying confidence levels in the economy remain healthy, with no reason to fear a significant slowdown in growth.

The group’s index of consumer confidence, widely followed by the financial markets for insights into the economy’s health, dropped to 101.6 from a revised reading of 104.6 in April.

However, the index is still higher than the March level of 100.2, February’s 99.4 and January’s 101.4. It is also sharply higher than its year-earlier level of 88.9.

The index, calculated from a 1985 base of 100, is derived from responses to questionnaires sent to 5,000 U.S. households each month, soliciting information on household finances, job opportunities, buying plans and expectations for the future.

“Although the latest confidence readings are somewhat less optimistic than in April, the current level remains strong,” said Fabian Linden, executive director of the Conference Board’s consumer research unit.

“While there have been recent signs of a slowing in economic growth, consumers still continue to feel secure about their jobs, their family income and the immediate future of the economy,” Linden said.

The latest survey results show that participants are somewhat less positive in their assessment of current economic conditions and less optimistic in their expectations for the immediate months ahead.

Twenty-two percent of respondents reported that jobs are plentiful, while 24% said they are hard to come by--slightly less positive than April’s results.

May respondents were slightly less positive on future job prospects as well, with 15% expecting more opportunities in the next six months and 17% foreseeing fewer jobs.

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Consumer Confidence

Index based on a monthly survey of 5,000 U.S. households; 1985=100:

May 1995: 101.6

Source: Conference Board