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The University of Michigan’s preliminary reading of consumer confidence in May came in at 95.8.
Economists had forecast that the sentiment index rose to 89.5 from a final reading of 89 in April, according to Bloomberg.
The report attributed the jump in confidence to frequent income gains, better expectations for the jobs market, and the expectation for lower interest rates and inflation.
Lower inflation implies higher real incomes.
“Nearly all of the gains were in the Expectations Index, which rose to its highest level in nearly a year,” the Surveys of Consumers chief economist Richard Curtin said.
“To be sure, the data still indicated the negative impact of uncertainty about future economic policies associated with the Presidential election, but its overall impact was overwhelmed by favorable economic developments.”