26 May 2009

US Consumer Confidence Soars in May

The following is excerpted from today's edition of “globeandmail.com”.

Consumer confidence in the U.S. extended its rebound in May, soaring to the highest level since last September as shoppers are seeing glimmers of hope for the economy.

The [US] Conference Board said Tuesday that its Consumer Confidence Index, which had dramatically increased in April, zoomed past economists' expectations to 54.9 from a revised 40.8 in April. … 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 per cent of economic activity…..

“While confidence is still weak by historic standards, as far as consumers are concerned, the worst is now behind us.”