US consumer confidence rose more sharply than expected in May as a more upbeat business outlook and a surging stock market overshadowed the impact of record petrol prices, a survey showed today.
The Conference Board said its index of consumer sentiment climbed toll to 108 in May versus April's upwardly adjusted 106.3.
However, record petrol prices have fanned consumers' inflation worries, pushing the report's inflation gauge to its highest level in a year.
Consumers' expectations for the inflation rate for year were 5.5% in May versus a downwardly revised 5.1% in April and 5.6% a year ago.
Consumers' views of current and future conditions improved in May from April.
The business research group's present situation index rose to 136.1 in May from an upwardly revised 133.5 in April, while its expectations index increased to 89.2 in May from an upwardly adjusted 88.2 in April.
