Confidence Reading Hits 28-Year High

Americans’ confidence in the economy soared to a 28-year high in May as high employment levels and low inflation kept consumers upbeat about their financial outlook, according to a private survey.

But a poll of economists finds expectations for slowing growth in the next year.

The Conference Board reported Tuesday that its consumer confidence index rose from a revised 118.5 in April to 127.1 in May, a level not reached since August 1969, when it hit 131.7.

Separately Tuesday, one poll of 243 economists by the National Association of Business Economists reported 84 percent expect some increase in interest rates by the Fed - a quarter or a half of a percentage point - over the next six months.

But another poll by the trade group - this of 37 forecasters - predicted slowing consumer consumption will reduce economic growth through the end of 1998. That should keep a lid on inflation, but boost consumer prices by about 2.8 percent this year and next.

Separately, the National Association of Realtors reported Tuesday that sales of previously owned homes fell 2.4 percent in April, the second small monthly decline in a row.