Consumer Confidence 6yr High

According to Bloomberg:

Confidence among U.S. consumers jumped in May by the most in six years, fueling speculation the economy will recover later this year. The Conference Board’s sentiment index surged to 54.9, higher than forecast, according to figures from the New York- based research group today.

Stocks climbed for the first time in five days on speculation a lifting of the gloom surrounding the worst recession in half a century may spur consumers, who account for 70 percent of the economy, to spend.

The 28-point jump in confidence over April and May is the biggest two-month rally since records began in 1967. The measure reached its lowest point ever in February, with a reading of 25.3.

Consumer confidence was projected to rise to 42.6, according to the median estimate in a Bloomberg News survey of 70 economists. Forecasts ranged from 38.5 to 47.

The Conference Board revised the April reading to 40.8, from an originally reported 39.2.

The confidence report showed the share of Americans planning to buy a car in the next six months rose to the highest level since April 2008, and those looking to purchase a large appliance rose to an eight-month high. The outlook for home purchases fell.