Consumer confidence soars to highest level in eight months

[w¡n9Nµ7 §£@¥€r 123]

NEW YORK – Consumer confidence extended its rebound in May, soaring to the highest level since last September as more shoppers are feeling the worst of the recession is behind them.

The Conference Board said Tuesday that its Consumer Confidence Index, which had dramatically increased in April, zoomed past economists' expectations to 54.9 from a revised 40.8 in April. Economists surveyed by Thomson Reuters were expecting 42.3. In February, confidence levels had hit a new historic low of 25.3.

The reading marks the highest in eight months when the level was 61.4.

...

Gary Thayer, chief economist at Wells Fargo Advisors, says that unless the economy suffers from major financial shocks, it looks like "we've turned the corner" on confidence.

"This is a significant change," said Thayer. "While (consumers) are unhappy about their job situation and their home values, they see light at the end of the tunnel."

http://news.yahoo.com/s/ap/20090526/ap_on_bi_ge/us_economy

[scandal 951]

Yeah, but meanwhile latest Case-Shiller came out dreadful on housing. Still, market rallied big time today.

Home Prices Plunge Again, But Relief May Be In Sight

Topics:Mortgages | Housing | Real Estate

Sectors:Utilities | Construction and Materials

By: Reuters | 26 May 2009 | 11:32 AM ET

Prices of US homes in March fell a sharp 18.7 percent from a year earlier, though some relief appeared to be in sight as, for the second month, prices did not slide at a record rate as they had been doing since late 2007.

Still, single-family home prices according to the Standard & Poor's/Case-Shiller Home Price Indices released on Tuesday were stuck in a slump as they also showed prices in the first quarter of 2009 dropped at a record annual pace of 19.1 percent.

The U.S. housing market is in the worst downturn since the Great Depression as a huge supply of unsold homes, tighter lending standards and record foreclosures push down prices.

Many potential home buyers have been staying on the sidelines, waiting for prices to hit bottom and for the economy to stabilize. Economists contend the economy might not emerge from its severe slump unless the housing market stabilizes.

Torsten Slok, senior economist at Deutsche Bank in New York, said lower home prices have improved affordability and that is key to the housing market's recovery.

"We think we have the worst of the housing adjustment behind us, but home prices are likely to continue to decline for the rest of this year," he said.

On a month-over-month basis, S&P's index of 20 metropolitan areas fell 2.2 percent in March from February. The 20-city index dates back to 2000.

[EstebanTrabajos 7]

Just wait until the interests on credit cards rises good bye to living above their means