Consumer confidence reached its highest level in at least five years in May, according the nations two leading authorities on the subject.
The Conference Board reported that its Consumer Confidence Index, increased again in May and now stands at 76.2 (1985=100), up from 69.0 in April. That marks the higher level since February 2008.
Thomson-Reuters/University of Michigan, meanwhile, is expected to report next week that its consumer sentiment index edged up to 84.5 in May from a reading of 76.4 percent recorded at the end of April, according to a report in the Wall Street Journal.
“Consumer Confidence posted another gain this month and is now at a five-year high (Feb. 2008, Index 76.4),” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers assessment of current business and labor-market conditions was more positive and they were considerably more upbeat about future economic and job prospects. Back-to-back monthly gains suggest that consumer confidence is on the mend and may be regaining the traction it lost due to the fiscal cliff, payroll-tax hike, and sequester.”
The Conference Board index showed consumers were considerably more optimistic about the short-term outlook. Those expecting business conditions to improve over the next six months increased to 19.2 percent from 17.2 percent, while those expecting business conditions to worsen decreased to 12.1 percent from 14.8 percent. Consumers outlook for the labor market was also more upbeat. Those expecting more jobs in the months ahead improved to 16.8 percent from 14.3 percent, while those expecting fewer jobs decreased to 19.7 percent from 21.8 percent. The proportion of consumers expecting their incomes to increase dipped slightly to 16.6 percent from 16.8 percent, while those expecting a decrease edged down to 15.3 percent from 15.9 percent.
