Consumer confidence in the U.S. rose in May after a modest decline last month as consumers' assessment of current conditions hit a 17-year high.
The Conference Board consumer confidence index climbed to 128.0 for the month from a downwardly revised reading of 125.6 in April.
The present situation index rose to 161.7 from 157.5, the highest since March 2001 when it was 167.5. The expectations index increased to 105.6 from 104.3.
Lynn Franco, director of economic indicators at the Conference Board, said the favorable assessment of current conditions suggests that economic growth likely improved in the second quarter.
"Consumers' short-term expectations improved modestly, suggesting that the pace of growth over the coming months is not likely to gain any significant momentum," Franco added. "Overall, confidence levels remain at historically strong levels and should continue to support solid consumer spending in the near term."
The Conference Board said the percentage of consumers describing business conditions as "good" rose this month, while fewer said conditions were "bad." The percentage of consumers expecting business conditions to improve over the next six months decreased.
Consumers' assessments of the labor market were mixed, reflecting increases in the percentage of the survey's respondents saying that jobs were either "plentiful" or "hard to get." Consumer's outlook for the labor market was also mixed, with increases in the proportion of consumers expecting both more and fewer jobs to be available.
