Consumer sentiment in May at post-recession high
By Steve Goldstein
May 11, 2012, 10:16 a.m. EDT
WASHINGTON (MarketWatch) — Consumer sentiment edged higher in May to the best reading since the recession, as declining gasoline prices appear to have offset slowing job-markets growth.
The preliminary reading of the University of Michigan-Thomson Reuters index rose to 77.8 from 76.4 in April. That’s the best reading since January 2008 — just one month after the recession started.
The current economic conditions index jumped to 87.3, the best reading since January 2008, from 82.9 in April.
The index of consumer expectations actually fell, falling to 71.7 from 72.3 in April.
That picture could be explained by the combination of falling gasoline prices, which impact the current situation, and April’s report of slowing jobs growth, which could be weighing on expectations.
“That is good news, and is thematically consistent with the view that the softening in recent labor data has more to do with seasonal pay back than a shift lower in underlying job demand,” said Eric Green of TD Securities.
U.S. stocks, impacted by a surprise J.P. Morgan trading loss, were weaker but moved off their lowest levels following the University of Michigan report.
Earlier, the Labor Department said producer prices dropped 0.2% in April due to falling gasoline prices.
http://www.marketwatch.com/story/consumer-sentiment-in-may-at-post-recession-high-2012-05-11
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