Consumer confidence continues to rise in May
For the third straight month, consumer confidence has risen in America, according to numbers released Tuesday morning by the Conference Board based in New York.
The group’s confidence index increased to 63.3, up from April’s 57.7. The Thomson Reuters/University of Michigan Consumer Sentiment Index has also shown an increase this month, rising to 73.3 from 72.2.
Lynn Franco, director of The Conference Board Consumer Research Center, said in a statement that consumer expectations, which rose to 85.3 from 77.4, are now above pre-recession levels, but income expectations remain low.
“Consumer confidence posted its third consecutive monthly gain, and although still weak by historical levels, appears to be gaining some traction. Consumers’ apprehension about current business conditions and the job market continues to slowly dissipate,” Franco said.
Analysts have attributed the increase in confidence to a boost in the job market, leading consumers to make more purchases. Bloomberg reported that net income has also increased 29 percent from a year ago.
“The underlying economy is improving, job opportunities are growing, and that’s going to continue,” Robert Stein, a senior economist at First Trust Portfolios LP in Illinois, told Bloomberg. “On the other hand, we have uncertainty in the financial markets and Europe.”
The survey also showed an increase in consumers’ outlook for the job market with 20.4 percent saying they expect more jobs in the months ahead, up from 17.7 percent in April.
The Conference Board’s numbers are based on a monthly survey of 5,000 U.S. households.