Consumer Confidence Index Jumps in May

In another bit of news that the recession may be slowing -- or that at least Americans are believing that the recession is slowing -- the Consumer Confidence Index made a big jump in May. According to a release from the Conference Board today, the index is up to 54.9 in May from 40.8 in April. The jump beat expectations.

The index is a created from a survey of 5,000 average households in order to gauge feelings about the economy and buying power. According to Lynn Franco, director of The Conference Board Consumer Research Center, the index is now at an eight-month high. It reached 61.4 in September 2008 before beginning a precipitous plunge through the fall and winter.

"Continued gains in the Present Situation Index indicate that current conditions have moderately improved, and growth in the second quarter is likely to be less negative than in the first," Franco said in a release. "Looking ahead, consumers are considerably less pessimistic than they were earlier this year, and expectations are that business conditions, the labor market and incomes will improve in the coming months."

"While confidence is still weak by historical standards, as far as consumers are concerned, the worst is now behind us," Franco added.

>To order reprints of this article, click here: Reprints