Consumer sentiment pushes ahead

Following Tuesday's large gain in consumer confidence from the Conference Board, the survey from the University of Michigan showed that consumer sentiment improved to 68.7 in May from 65.1 in April.

It's clear that most of us are growing more optimistic about a recovery even as housing prices keep falling and unemployment continues in an upward trend.

I suspect we'll see nonfarm payrolls take another hit in May because of still elevated jobless claims this month, but the worst of this recession appears to be behind us.

Given that a decline in consumer confidence early last year foreshadowed the recession, the improvement in sentiment is welcome.

One final point, the Chicago Purchasing Managers' Index fell to a disappointing 34.9 in May from 40.1 in April. A reading below 50 suggests Midwestern manufacturing is shrinking. The index tends to be volatile, and I'm not overly concerned and will wait for the ISM Manufacturing Index next week.

Today's update on 1Q GDP is available at Examiner.com.