Confidence Boom?

by: Tim Duy

The early read on the Thomson Reuters/University of Michigan Consumer Sentiment index jumped to 83.7 in May, up from 76.4 in April. Just a quick reminder before we get too excited -- sentiment has tended to be low relative to actual spending. May's sentiment bounce just returns us to trend:

0517CON

0517CON2

Better than collapsing confidence, but by itself not pointing to an imminent acceleration in consumer spending.