by Calculated Risk on 5/25/2012 09:55:00 AM

Click on graph for larger image.

The final Reuters / University of Michigan consumer sentiment index for May increased to 79.3, up from the preliminary reading 77.8, and up from the April reading of 76.4.

This was above the consensus forecast of 77.8 and the highest level since October 2007 - before the recession started. Overall sentiment is still fairly weak - probably due to a combination of the high unemployment rate, high gasoline prices and the sluggish economy - but falling gasoline prices probably helped in May.