US consumer confidence improves in May

Consumer sentiment in the States unexpectedly improved this month, according to data released on Tuesday by the Conference Board.

The closely-watched consumer confidence index rose to 95.4 in May after dropping to a four-month low of 95.2 in April.

This beat the consensus forecast by analysts, who had expected a slight dip to 95.0.

The Conference Board said its present situation index increased to 108.1 from 105.1 previously after three months of falls, while the expectations index fell to 86.9 from 87.1.

"Consumer confidence improved modestly in May, after declining sharply in April,” said Lynn Franco, director of economic indicators at the Conference Board.

However, he said: "While current conditions in the second quarter appear to be improving, consumers still remain cautious about the short-term outlook.”

Meanwwhile, Paul Ashworth, chief US economist at Capital Economics, said the headline improvement was a "pleasant surprise given that other measures of confidence had weakened in response to the recent surge in gasoline prices".