Rising consumer confidence lifts stocks |
| The Associated Press - May 27, 2011 |
Maybe American consumers are better off than anyone thought.
An unexpected jump in consumer confidence and slight gains in Americans' spending and income helped push stocks higher for the third day in a row Friday.
The Thomson Reuters/University of Michigan Consumer Sentiment index rose to 74.3 in May, above analysts' estimates of 70. Concerns about higher gas prices and inflation knocked the gauge down in March and April.
Gas prices have come down in May after reaching nearly $4 last month, giving a lift to the closely watched measure of consumer confidence.
"That's what a 25-cent drop in gas prices will do," David Ader, bond strategist at CRT Capital Group, wrote in an email to clients.
That dip isn't accounted for in the latest consumer spending figures from the Commerce Department, because its numbers lag by a month. Both personal income and spending rose 0.4 percent in April, in line with what economists expected. Higher prices for food and gas made up most of the increase in consumer spending, which practically ate up the income gains.
Read Full Article from The Associated Press
- Posted: 2011-05-27 12:55:23
| More Stock Investor Place Top Stories |
 |
|
|
|
| Stock Investor Place Top Stories Archive |
|
|
|
