New York City U.S. consumer confidence rose in early May, the strongest confidence level recorded since the tailspin of the financial sector in September, according to Reuters and the University of Michigan Survey of Consumers.
Confidence levels increased to 67.9 from 65.1 in April. This exceeded economists’ median expectations of a result of 67.0, the study said.
Consumer expectations also jumped to 69.0, up from 63.1 in April. These statistics hint that shoppers may believe the economy could be in the last stages of recession, the study said.
Amid these glimmers of hope, there is still a long way to go until shoppers regain complete confidence. A majority of consumers reported in early May that their financial situations had worsened. Consumers blamed income declines, shorter work hours and lost jobs to their overall instability, the study reported.