US consumer confidence rebounds

An easing in petrol prices has helped confidence

US consumer confidence fell during May from April, but has picked up towards the end of the month as gasoline prices eased and the job market got stronger.

The University of Michigan said its measure of confidence fell to 86.9 in May from 87.7 in April.

"Consumers are not euphoric over the economy, but confidence is slowly improving," said Lynn Reaser, an economist at Bank of America.

She said there had also been better stock market news in the past weeks.

If we look at home, auto, and general retail sales, consumers seem even more optimistic than suggested by the confidence surveys Lynn Reaser, Bank of America

Consumer spending accounts for 66% of US economic activity and is viewed as a gauge of the health of the economy.

The figures came as separate data from the US government's Commerce Department showed that personal income rose at its fastest pace this year in April.

Analysts said it was largely down to a gain of 274,000 jobs last month, which helped propel wage growth.

The Commerce Department said incomes were up 0.7% during the month, but that the public's spending slowed down compared to a big leap in March.

'More encouraged'

On Thursday the government said the overall economy grew at a 3.5% rate in the first three months of the year, better than had originally been envisaged.

"Consumers are still not as upbeat as April, but are becoming more encouraged than they had been earlier in the month," said Lynn Reaser.

"If we look at home, auto, and general retail sales, consumers seem even more optimistic than suggested by the confidence surveys."

There was no major reaction in US markets, ahead of the long holiday weekend, to the reports.