U.S. consumer confidence improves in May

The Conference Board announced on Tuesday its U.S. consumer confidence gauge rose 4.9 points to 134.1 in May from 129.2 in April.

Economists had expected consumer confidence to come in at 130.0.

April’s consumer confidence reading was unrevised at 129.2.

The survey showed that the expectations index increased from 102.7 last month to 106.6 this month, while the present situation index jumped from 169.0 to 175.2.

Lynn Franco, Senior Director of Economic Indicators at The Conference Board, noted, Consumer Confidence posted another gain in May and is now back to levels seen last Fall when the Index was hovering near 18-year highs. The increase in the Present Situation Index was driven primarily by employment gains. Expectations regarding the short-term outlook for business conditions and employment improved, but consumers’ sentiment regarding their income prospects was mixed. Consumers expect the economy to continue growing at a solid pace in the short-term, and despite weak retail sales in April, these high levels of confidence suggest no significant pullback in consumer spending in the months ahead.”