Consumer confidence surged to a five-year high in May, fueled by increased optimism about an improving job market.
The Consumer Confidence Index, which gauges how consumers feel about the economy each month, rose to 76.2 in May — its highest reading since February 2008, according to research firm The Conference Board.
Consumer confidence has been on the rise for the past two months after plummeting in March as Americans worried about the effects of automatic government budget cuts.
Fueling the increase: consumers feel more positive about current business and job-market conditions and are considerably more upbeat about future prospects of economic and job growth, said Lynn Franco, The Conference Board’s director of economic indicators.
“Back-to-back monthly gains suggest that consumer confidence is on the mend and may be regaining traction it lost due to the fiscal cliff, payroll-tax hike and sequester,” Franco said in a statement.
