After declining slightly last month, consumer confidence has rebounded moderately in May.
The Conference Board's Consumer Confidence Index now stands at 95.4, up from 94.3 in April. The index reached a 7.5-year high of 103.8 in January of this year.
"Consumer confidence improved modestly in May, after declining sharply in April," said Lynn Franco, Director of Economic Indicators at The Conference Board. "After a three-month slide, the Present Situation Index increased, propelled by a more positive assessment of the labor market. Expectations, however, were relatively flat following a steep decline in April. While current conditions in the second quarter appear to be improving, consumers still remain cautious about the short-term outlook."
The Conference Board says that consumers' assessment of current-day conditions improved in May. Those saying business conditions are "good" edged down from 25.5 percent to 25.2 percent. However, those claiming business conditions are "bad" also decreased from 19.2 percent to 17.4 percent.
Consumers were mixed in their assessment of the job market. Those stating jobs are "plentiful" increased from 19.0 percent to 20.7 percent, while those claiming jobs are "hard to get" rose from 25.9 percent to 27.3 percent.
Consumers' optimism about the short-term outlook edged down in May. The percentage of consumers expecting business conditions to improve over the next six months inched up from 15.4 percent to 15.6 percent, while those expecting business conditions to worsen also increased, from 9.1 percent to 10.8 percent.
The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a global provider of information and analytics around what consumers buy and watch.