The housing market remains in peril and the labor market isn't much better. But American consumers are hoping that change is coming for the better, according to those polled by the Conference Board.
The group's monthly index of consumer confidence jumped in May to 54.9 (the highest reading in eight months) from April's revised reading of 40.8. This nearly 35% move is the largest one-month increase since April 2003. What's more, it is well above economists' expectations of 42.0.
The number of respondents noting that jobs are "hard to get" declined slightly to 44.7% from 46.6%. On the flip side, those describing available jobs as plentiful edged up to 5.7% from 4.9% last month. In other news, the number of Americans who plan on buying a car in the next six months rose to 5.5%, the highest figure in a year. Just 2.3%, however, plan on buying homes in this so-called buyers' market.
A Conference Board spokeswoman told CNNMoney, "Consumers are considerably less pessimistic than they were earlier this year."
Maybe it's the spring weather, the new Administration in Washington, or the recent rally in the stock market that is making Americans more sanguine. But a cheerful populace is often one that is more willing to open its wallets, and this could be good news for the consumer group overall.
Beth works for The Options News Network (www.ONN.tv), which provides daily options commentary.
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