Consumer Confidence Up Sharply

U.S. consumer confidence improved sharply in May, especially in expectations for the economy six months from now, a report released Tuesday said. The report boosted stocks and sent the Dow Jones Industrial Average surging more than 200 points.

The Conference Board, a private research group, said its index of consumer confidence for May jumped to 54.9, compared with 40.8 in April, which was originally reported as 39.2. The current month's reading was well above economists' expectations of 43.0, according to a survey conducted by Dow Jones Newswires.

The index is now at its highest since September 2008, the board said.

The present situation index, a gauge of consumers' assessment of current economic conditions, edged up to 28.9 from 25.5 in April.

Consumer expectations for economic activity over the next six months jumped to 72.3 from 51.0 in the prior month.