Consumer confidence is on an upward trend, and this a good thing for a consumer-driven economy like ours.
The Conference Board reports that its Consumer Confidence Index increased in May, following a modest decline in April (after a downward revision).
The Index now stands at 128.0 (1985=100), up from 125.6 in April. 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.
This monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was May 16.
\"Consumer confidence increased in May after a modest decline in April,\" said Lynn Franco, Director of Economic Indicators at The Conference Board.
Franco explains further, \"Consumers\' assessment of current conditions increased to a 17-year high (March 2001, 167.5), suggesting that the level of economic growth in Q2 is likely to have improved from Q1. Consumers\' short-term expectations improved modestly, suggesting that the pace of growth over the coming months is not likely to gain any significant momentum. Overall, confidence levels remain at historically strong levels and should continue to support solid consumer spending in the near-term.\"
We\'ll keep an eye on economic growth number, when they\'re published. Franco is probably correct; the big question is just how strong will growth be?