US consumer confidence rose in May as Americans shrugged off fears of job losses and looked ahead to better economic times, according to a survey by the US Conference Board. The Conference Board's consumer confidence index rose to 83.8 in May from 81.0 in April - the second straight increase in the index after four consecutive monthly declines.
Confidence is at its highest level since November when it reached a five-year low. The increase in consumer confidence, however, was not as large as expected. Wall Street analysts had forecast that the index would rise to 86.0 for the month. The Expectations Index rose to 94.4 from 84.8 in April. However, the Present Situation Index fell to 67.9 from 75.3. Both indices give an indication of consumer sentiment and are closely watched by US investors. Consumers' expectations for the next six months were more optimistic than last month. Those expecting business conditions to improve increased to 22.8pc from 18.7pc. Consumers expecting conditions to deteriorate fell to 9.7pc from 12.3pc. ///www.fxcentre.com