- Paul Dales, a senior economist at Capital Economics Ltd.
U.S. consumer confidence rose by more than expected in May as consumers became more optimistic on the outlook of the country's economy. An index of sentiment gained to 77.8 from 76.4 in April, said the University of Michigan on Friday.
"Confidence has been boosted by lower gasoline prices, which has more than offset the stabilization in equity prices," said Paul Dales, a senior U.S. economist at Capital Economics Ltd. in London.
"At the same time, perhaps the slowdown in the labor market we've seen in recent months has been a bit overblown, and in fact people are getting a bit more encouraged about the jobs outlook."
"The most likely prospect is that job growth returns to a modest pace of gains and consumers trim their overly optimistic expectations, with not much change in overall confidence until after the November [presidential] election and the decisions on tax policy," said Richard Curtin, survey director.
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