Consumer Sentiment in U.S. Jumps to Highest Level in a Year
- Confidence propelled by stronger view on real-income gains
- Michigan gauge of expectations jumps by most since 2006
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Consumer confidence in the U.S. climbed to an almost one-year high in May as Americans grew the most upbeat about incomes after inflation than at any time in a decade, the University of Michigan’s report showed on Friday.
The broad-based advance in expectations, bolstered by optimism about projected real income gains, is an encouraging sign that consumers are looking past the first-quarter slowdown and may boost spending, which is the biggest part of the economy. That will help usher a strong rebound this quarter and ease concerns among economists that household consumption wasn’t robust enough to make up for more modest gains elsewhere in the economy.