Consumer sentiment strongest in nearly six years in May

[ProSense]

Consumer sentiment strongest in nearly six years in May

(Reuters) - Greater optimism over the economic outlook and personal finances in the midst of record stock market prices pushed U.S. consumer sentiment to its highest level in nearly six years in May, a survey released on Friday showed.

While upper income households continued to set the pace, confidence also began to improve among middle and lower income households in the latter part of the month...Thomson Reuters/University of Michigan's final reading on the overall index on consumer sentiment rose to 84.5 from 76.4 in April.

It was the highest level since July 2007. The report topped expectations for 83.7, which was May's preliminary figure earlier in the month.

The barometer of current economic conditions jumped to its highest level since August 2007 at 98.0 from 89.9, while

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http://www.reuters.com/article/2013/05/31/us-usa-economy-sentiment-idUSBRE94U0QU20130531

[Bonhomme Richard]

1. And the same month showed a drop in consumer spending.

Who is telling the truth and who is exaggerating to make the story a "feel good" story?

[ProSense]

2. It was a

"And the same month showed a drop in consumer spending."

...a slight drop

Personal Income declined slightly in April, Spending declined 0.2%

<...>

Some of the decline in spending is probably related to lower gasoline prices in April - and that is actually a positive (gasoline prices rebounded in May though). Also PCE was revised up for January (slightly), February and March.

http://www.calculatedriskblog.com/2013/05/personal-income-declined-slightly-in.html

Still, consumer sentiment at a six-year high is good news.