Confidence of U.S. Consumers Rises to Highest Since Credit Crisis Started

Source: Bloomberg

By Bob Willis

May 15 (Bloomberg) -- Confidence among U.S. consumers rose this month to its highest level since before the collapse of credit markets late last year threw the economy deeper into a recession.

The Reuters/University of Michigan preliminary index of consumer sentiment rose to 67.9 in May from 65.1 in April. The index reached a three-decade low of 55.3 in November.

Surging stocks and signs that the deepest recession in at least five decades is moderating may prompt Americans to increase their spending. Still, the recovery may be drawn out as automakers close factories and showrooms, throwing more people out of work.

“Financial-market improvement and the fiscal stimulus is leading to stabilization in spending and improvement in confidence,” said Dean Maki, co-head of U.S. economic research at Barclays Capital Inc. in New York. “Economic data, while choppy, has improved somewhat, and consumer spending has stabilized.”

Economists projected the sentiment index would rise to 67, according to the median of 53 estimates in a Bloomberg News survey. Forecasts ranged from 63 to 70.5.

Read more: http://www.bloomberg.com/apps/news?pid=20601068&sid=alSpXS4U7nkU&refer=home

If you keep following the DU SMW, the fundamentals have not changed enough to turn things around. Some of this also can come from it being May instead of October when things started to drop. High sun and warm temps always makes people feel better.

campaign being pushed by all media and politicians.

and are buying into the BS floating around about the worst being behind us.