U.S. Michigan Consumer Index Signals Optimism

The U.S. Michigan Consumer Sentiment Index, which measures consumers’ perceptions towards buying, rose to 73.3 in May. Consumer spending accounts for 70% of the GDP. The growth in the index indicates that the consumer segment is taking part in the economic recovery. Last month, the number of jobs added was the highest in the last four years, giving consumers more spending power. Retails sales grew for the seventh consecutive month in April. It is expected that consumer spending and economic growth will continue to grow.