Survey: U.S. consumer mood highest in eight months

New York City The U.S. government’s stimulus programs are working to put more money in Americans’ pockets, and this is helping consumer confidence to slowly rebound, according to The Reuters/University of Michigan Survey of Consumers.

As May comes to a close, consumer confidence readings hit 68.7, almost four points higher than April’s 65.1 figure. This is slightly above economists’ median expectation of a 68 rate, the survey said.

"Compared with the state of the economy six months ago, consumers have indeed regained a good measure of confidence," said Richard Curtin, director of the surveys.

The statistics reveal that an economic rebound is on the horizon and consumers are thawing to the idea of recovery. Analysts monitor consumer confidence as the leading gauge of consumer spending, which accounts for about 70% of the economy.

There is still a long road ahead however. Early Friday, the government reported its first-quarter reading on consumer spending was 1.5%, a drop from its previous estimate of 2.2%, according to the study. 

Consumer confidence hit a 28-year low in November, a timeframe that is described as the worst economic downturn since the Great Depression, the study said.