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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: American Spirit who wrote (10550)	5/29/2007 11:42:48 AM
From: Ann Corrigan	Respond to of 224748

U.S. Consumer Confidence Rises More Than Forecast By Bob Willis May 29 (Bloomberg) -- An index of consumer confidence in the U.S. jumped more than forecast in May as rising stock prices and a resilient labor market put Americans in a mood to spend. The New York-based Conference Board's index of consumer confidence rose to 108.0 this month from a revised 106.3 in April, a five-month low. The index averaged 105.9 last year. Buoyant sentiment will support consumer spending, helping cushion the economy from the effects of declining home prices and expensive gasoline. That raises the likelihood the Federal Reserve's forecast for ``moderate'' growth in coming quarters will be borne out. ``A better job market plus a higher stock market equals a better tone,'' said Roger Kubarych, chief U.S. economist at Unicredit HVB, who forecast a reading of 107. ``It's a snapshot of an economy that has improved and is improving. This points in the Fed's direction.'' The index was forecast to rise to 105, according to the median estimate in a Bloomberg survey of 65 economists, from an originally reported 104. Forecasts ranged from 100 to 107. The Conference Board's measure of present conditions rose to 136.1 from 133.5. The gauge of expectations for the next six months rose to 89.2 from 88.2. Better Business Conditions The survey also showed Americans expect overall business conditions to improve. Those who foresee better conditions in six months rose to 15.1 percent of the sample from 13.8 percent in April. A preliminary survey by Reuters/University of Michigan released May 18 unexpectedly showed sentiment this month rose to 88.7 from 87.1 in April. While the University of Michigan and Conference Board surveys generally track each other, the Conference Board's focuses more on labor market conditions. Americans are feeling more secure about their jobs as firings slow and unemployment is at 4.5 percent, the second- lowest in six years. A four-week moving average of jobless claims fell to 302,800 last week, the lowest in more than a year. Average hourly earnings were up 3.7 percent in April from the prior year, the government said May 4. Consumers were also encouraged by a 2.9 percent gain in the Standard & Poor's 500 Index through May 22 from the last week in April. Department stores J.C. Penney Co. and Kohl's Corp. reported first-quarter profits on May 17 that exceeded analysts' estimates and raised their full-year earnings forecasts. J.C. Penney's net income rose 13 percent and Kohl's profit climbed 25 percent. ``The year is off to a strong start,'' J.C. Penney Chief Executive Officer Myron Ullman said. New stores are doing ``exceedingly well,'' he said. Consumer Spending Consumer spending, which accounts for 70 percent of the economy, grew at a stronger-than-expected 3.8 percent rate in the first quarter.