Consumer confidence soars more than expected in May
Consumer confidence soared to the highest level in eight months in May, sharply beating analysts’ estimates, as Americans believe the job market and overall business conditions will improve before the end of the year.
But prices of single-family homes fell sharply again in March helping curb consumer spending, though the pace of the decline slowed.
Although the confidence index is still weak by historical standards, Americans think “the worst is now behind us,” said Lynn Franco, director of the Conference Board Consumer Research Center.
The broad measure of consumer sentiment jumped to 54.9, up from 40.8 in April, far surpassing average analysts’ expectations of about 43. It was the biggest monthly increase in six years and the third straight jump after the confidence measure hit a record low in February and the highest since September.
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