Investing.com - Confidence among U.S consumers rose in May, according to data released on Tuesday.
The Conference Board's index of consumer confidence increased to 128.0 this month, compared to a reading of 128.2 forecast by economists.
April’s reading was revised down to 125.6 from the initial 128.7.
The index looks at U.S. consumer’s views of current economic conditions and their expectations for the next six months. The index is closely watched by economists because consumer spending accounts for about 70% of U.S. economic activity.
The Present Situation Index increased from 157.5 to 161.7, while the Expectations Index improved from 104.3 last month to 105.6 this month.
“Consumer confidence increased in May after a modest decline in April,” Lynn Franco, director of Economic Indicators at The Conference Board, said.
Franco noted that consumers’ assessment of current conditions increased to a 17-year high, suggesting that the level of economic growth in the second quarter is likely to have improved from the first three months of the year.
“Consumers’ short-term expectations improved modestly, suggesting that the pace of growth over the coming months is not likely to gain any significant momentum,” she added.
“Overall, confidence levels remain at historically strong levels and should continue to support solid consumer spending in the near-term,” Franco concluded.