U.S. consumer confidence unexpectedly improved in May after deteriorating for three straight months amid optimism about the labor market, but worries about inflation persisted and many households expected higher interest rates over the next year.
The Conference Board said that its consumer confidence index increased to 102.0 this month from an upwardly revised 97.5 in April, surprising economists who forecasted the index to slip to 95.9.
The mixed survey from the Conference Board also showed more consumers believed that the economy could slip into recession in the next 12 months. Despite having concerns, consumers are not planning to cut back on spending in a significant way.