Consumer confidence extended its rebound in May, soaring to the highest level since last September as shoppers are seeing glimmers of hope for the economy. The Conference Board says its Consumer Confidence Index, which had dramatically increased in April, zoomed past economists’ expectations to 54.9 from a revised 40.8 in April. Economists surveyed by Thomson Reuters were expecting 42.3. The reading marks the highest reading in eight months when the level was 61.4. The levels are also closer to the year-ago reading of 58.1. The Present Situation Index, which measures how shoppers feel now about the economy, rose to 28.9 from 25.5 last month. But the Expectations Index, which measures shoppers’ outlook over the next six months, climbed to 72.3 from 51.0 in April. Economists closely monitor consumer confidence because consumer spending accounts for more than 70% of economic activity.
Consumer confidence soars in May
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