Consumer confidence jumps in May

New York City Consumer confidence extended its rebound in May, soaring to the highest level since last September as shoppers see glimmers of hope for the economy. The results also reflect growing perceptions that the job market will improve.

The Conference Board said Tuesday that its Consumer Confidence Index, which had dramatically increased in April, zoomed past economists' expectations to 54.9 from a revised 40.8 in April. Economists surveyed by Thomson Reuters were expecting 42.3. This marks the highest reading in eight months when the level was 61.4. The levels are also closer to the year-ago reading of 58.1.

The Present Situation Index, which measures how shoppers feel now about the economy, rose to 28.9 from 25.5 last month. But the Expectations Index, which measures shoppers' outlook over the next six months, climbed to 72.3 from 51.0 in April.

Economists closely monitor consumer confidence because consumer spending accounts for more than 70% of economic activity.

"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," Lynn Franco, director of The Conference Board Consumer Research Center, said in a statement. "While confidence is still weak by historic standards, as far as consumers are concerned, the worst is now behind us."