- Preliminary Univ. of Mich. Consumer Confidence for May rose to 88.7 versus estimates of 86.2 and a reading of 87.1 in April.
BOTTOM LINE: Confidence among US consumers unexpectedly rose in May as strength in the labor and stock markets helped overcome high gasoline prices. The Expectations component of the index rose to 79 this month from 75.9 the prior month. The Current Conditions component fell slightly to 103.8 from 104.6 the prior month. The average price of gas rose to $3.13/gallon yesterday, about .30/gallon more than the average the prior month. I continue to believe consumer confidence readings will head back towards cycle highs later this year as stocks rise further, housing sales stabilize at relatively high levels, interest rates remain low, inflation decelerates further, gas prices fall substantially and the job market remains healthy.
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