U.S. consumer confidence improved moderately in May, the New York-based research group Conference Board said Tuesday.
The Conference Board Consumer Confidence Index stood at 83.0 in May, up from 81.7 in April. The Present Situation Index increased to 80.4 from 78.5, while the Expectations Index edged up to 84.8 from 83.9 in April.
"Consumer confidence improved slightly in May, as consumers assessed current conditions, in particular the labor market, more favorably. Expectations regarding the short-term outlook for the economy, jobs, and personal finances were also more upbeat," said Lynn Franco, director of economic indicators at the Conference Board.
In fact, the percentage of consumers expecting their incomes to grow over the next six months is the highest since December 2007.
"Despite last month's decline, consumers' confidence appears to be growing," he added.
Consumers' expectations increased slightly in May. The percentage of consumers expecting business conditions to improve over the next six months edged up to 17.5 percent from 17.2 percent, while those expecting business conditions to worsen decreased marginally to 10.2 percent from 10.5 percent.
Consumers were more positive about the outlook for the labor market. Those anticipating more jobs in the months ahead increased to 15.4 percent from 14.7 percent.
The proportion of consumers expecting their incomes to grow increased to 18.3 percent from 16.8 percent, but those expecting a drop in their incomes also increased, to 14.5 percent from 12.9 percent.