By Steve Goldstein, MarketWatch
WASHINGTON (MarketWatch) — A gauge of U.S. consumer confidence rose in May to a three-month high, according to a survey released Friday, as confidence about the future improved.
The preliminary University of Michigan-Thomson Reuters consumer sentiment index climbed to a reading of 72.4 from a reading of 69.8 in April. The figure topped expectations, as economists polled by MarketWatch expected a 71.0 reading.
The current conditions index actually fell as the unemployment rate ticked higher to 9% and as national gasoline prices reached $4 a gallon, but the expectations index jumped nearly six points to its best reading since February.
One-year inflation expectations fell to 4.4% from 4.6%, but five-year expectations rose to 3% from 2.9%.
The report explicitly said that the killing of terrorist Osama bin Laden’s death didn’t spur the advance, but economists weren’t so sure.
“We are somewhat concerned that the uptick may prove to be fleeting as we believe that it may be a reflection of the positive feelings towards the Bin Laden capture two weeks ago and not necessarily a reflection of improving fundamentals,” said economists from TD Securities in a note to clients.
The gauge hasn’t been above 100 since Jan. 2004 and was at 76.1 on the eve of the last recession.
