Consumer confidence rises, home price index disappoints

The improvement in the consumer confidence is evident with the Consumer Confidence Index getting a jump from 40.8 in last month to 54.9 in May. This jump is much higher than the predicted jump of average 42.3. This indicator is quite useful to suggest whether
consumer will start shopping again or not. Also, Dow Jones added 2.4% even though other data showed record house falls in beginning of 2009.

The index is highest since last September. It was in last September when the downfall of Lehman Brothers accelerated the financial crisis in US which later turned global. On the other hand, the Home Price Index showed that the house prices fell by 19.1% in the starting of this year as compared to the same time last year. The house prices peaked in 2006 and have fallen 32.2% ever since. But the index also showed that the decline in the prices has considerably slowed down. But still there are no signs of recovery in home prices.