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| Version 1 | Version 2 |
|---|---|
| US consumer confidence increases | US consumer confidence increases |
| (about 1 hour later) | |
| US consumers were more upbeat than expected about the economy in May, encouraged by a strong stock market, a survey has suggested. | US consumers were more upbeat than expected about the economy in May, encouraged by a strong stock market, a survey has suggested. |
| The Conference Board's index of consumer confidence climbed to 108 in May, up from 106.3 recorded last month. | The Conference Board's index of consumer confidence climbed to 108 in May, up from 106.3 recorded last month. |
| But the renewed optimism in the US economy failed to dim concerns over inflationary pressures as petrol prices reached record highs. | But the renewed optimism in the US economy failed to dim concerns over inflationary pressures as petrol prices reached record highs. |
| The report was based on a survey of 5,000 US households. | The report was based on a survey of 5,000 US households. |
| The survey underpinned the positive findings of the Reuters/University of Michigan consumer sentiment index, released earlier in the month, and showed people have been too pessimistic about levels of consumer confidence, analysts said. | The survey underpinned the positive findings of the Reuters/University of Michigan consumer sentiment index, released earlier in the month, and showed people have been too pessimistic about levels of consumer confidence, analysts said. |
| Inflation worries | |
| An upbeat outlook for business conditions also helped consumers to shrug off concerns over a housing market downturn and steep fuel prices, although the latter pushed up worries over inflation to a 12-month high. | An upbeat outlook for business conditions also helped consumers to shrug off concerns over a housing market downturn and steep fuel prices, although the latter pushed up worries over inflation to a 12-month high. |
| Consumers' view of the job market, both present and six months into the future, was little changed and did not lift confidence, The Conference Board added. | |
| "All in all, confidence levels continue to suggest growth, albeit at a slower pace," said Lynn Franco, a director at the business research group. | |
| The consumer outlook is closely monitored by analysts as consumer spending accounts for about two-thirds of US economic activity. |