Consumer confidence rises unexpectedly in May as economy reopens

CNBC

The Conference Board’s consumer confidence index rose to 86.6 this month from 85.7 in April.

Economists polled by Dow Jones expected consumer confidence of 82.3 in May.

“Short-term expectations moderately increased as the gradual re-opening of the economy helped improve consumers’ spirits,” said Lynn Franco of The Conference Board.

Consumer confidence unexpectedly improved in May as the U.S. economy slowly restarted, according to data released Tuesday by The Conference Board.

The business group’s consumer confidence index rose to 86.6 this month from 85.7 in April. Economists polled by Dow Jones expected consumer confidence of 82.3 in May.

“Following two months of rapid decline, the free-fall in Confidence stopped in May,” Lynn Franco, senior director of economic indicators at The Conference Board, said in a statement. “Short-term expectations moderately increased as the gradual re-opening of the economy helped improve consumers’ spirits.”

As of Tuesday, all 50 states had reopened their economies to some extent.

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“However, consumers remain concerned about their financial prospects,” Franco added. “While the decline in confidence appears to have stopped for the moment, the uneven path to recovery and potential second wave are likely to keep a cloud of uncertainty hanging over consumers’ heads.”

Stocks rallied Tuesday as traders cheered the U.S. economy reopening. The S&P 500 broke above the psychological level of 3,000 for the first time since early March, and the Dow broke above 25,000 level for the first time since March 10. Stocks also increased bets on a potential coronavirus vaccine.

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