Huge improvement on Consumer Confidence

• After two months of significant improvement the consumer confidence is now at its highest level in eight months. 
• Continued gains in the present situation index indicates that current conditions have moderately improved, and growth Q2 is likely to be “less negative”

Out of the consumers surveyed:

• Those claiming business conditions are "good" increased to 8.7 percent from 7.9 percent.
• However, those claiming conditions are "bad" increased to 45.3 percent from 44.9 percent.
• Consumers' appraisal of the job market was also more favorable.
• Those claiming jobs are "hard to get" decreased to 44.7 percent from 46.6 percent in April.
• Those saying jobs are "plentiful" edged up to 5.7 percent from 4.9 percent.

Consumers' short-term outlook improved significantly in May.

• Those expecting business conditions will improve over the next six months increased to 23.1 percent from 15.7 percent
• While those anticipating conditions will worsen declined to 17.8 percent from 24.4 percent in April.

The employment outlook was also less pessimistic.

• The percentage of consumers expecting more jobs in the months ahead increased to 20.0 percent from 14.2 percent
• While those anticipating fewer jobs decreased to 25.2 percent from 32.5 percent.
• The proportion of consumers anticipating an increase in their incomes edged up to 10.2 percent from 8.3 percent.

fewer intended to buy homes

• only 2.3 percent, a tough break for one of the hardest hit sectors in the country's economic crisis.
• A separate report on Tuesday revealed U.S. home prices dropped 18.7 percent in March compared to a year earlier.

Personally, this data is BS to me.  Nothing is getting better, the number of jobs layoffs are still in the high range, as reported by the weekly unemployment data.  Retail sales are still on a decline based on the latest retail sales numbers and home prices have not stabilized just one bit.  The true report is in this one, by Boston Consulting Group in April.  If consumer confidence is building up because of the stock market’s recently rally, than they better think again because even the stock market is not rallying on fundamentals. 

Source: Conference-Board, Reuters, BCG & FXDD