US Consumer Confidence Jumps by Most in Six Years

US Consumer Confidence Jumps by Most in Six Years

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smmoney.JPGU.S. consumer confidence jumped in May by the most in six years, bolstering indications that the recession will end this year. The 28-point jump in confidence since the end of March is the biggest two-month rally since records began in 1967.

“Psychology plays a big part in the business cycle,” said economist Ed Yardeni, president of Yardeni Research. “When people want to believe that the economy should improve, it usually does. That’s the power of positive thinking.”

Stocks soared on the news yesterday, with major indices up more than 2 percent.

(Read more at the Philadelphia Inquirer)

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