U.S. University of Michigan consumer confidence rises in May, supportive of economic growth in near-term

The U.S. University of Michigan consumer confidence bolsters in May. The consumer sentiment index rebounded to 97.7 in the preliminary estimate of May, on the contrary to the Barclays’ projection of a modes drop to 94.9. The preliminary estimate came in above the consensus forecast of 97.

The current conditions index stayed stable at 112.7, whereas the expectations index rebounded slightly to 88.1 from 87. The one-year inflation expectation index was up one-tenth to 2.6 percent, whereas the long-term inflation expectations dropped by one-tenth to 2.3 percent,

In all, the persistent rebound in the headline index implies that consumer confidence stays on a strong footing and is supportive of economic growth in the near term, stated Barclays in a research report.