Consumer Confidence Surges Unexpectedly in May

Washington, DC, May 27, 2009--Consumer confidence 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 research group. A report from S&P/Case-Shiller showed home prices continued to plunge.

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