WASHINGTON-A better hiring outlook and lower gas prices pushed a measure of US consumer confidence to its highest level in four and a half years. The Thomson Reuters/University of Michigan index of consumer sentiment jumped to 79.3 in May, up from 76.4 in the previous month. That's the best reading since October 2007-two months before the recession began.
A high proportion of consumers say they are hearing about job gains rather than losses. The number of those who say they heard of job losses dropped to its lowest point since mid-2007. Gas prices have also fallen steadily in recent weeks, freeing up more money for other purchases. The average gas price yesterday was US$3.67 per gallon (nearly US$1 a litre) nationwide, according to AAA. That's down 17 cents in the past month.
American consumers appear to be more focused on the U.S. economy than on Europe's financial crisis, which has weighed heavily on stocks in May. The Dow Jones industrial average dropped 75 points yesterday to close at 12,455.
AP