Univ. of Michigan Survey Shows Consumer Confidence Gaining

The University of Michigan said Friday that Americans were feeling better about the economy and will likely keep supporting an economic recovery, boding well for the trucking industry.

At the same time, the U.S. Department of Labor reported U.S. productivity up 8.4% in the first quarter, its best performance in nearly two decades.

In its final report in May, the university’s consumer sentiment index rose to 96.9 in May from a reading of 93 in April. Other parts of the report reflecting consumers’ feelings on the current state of the economy and the direction it is heading also rose.

U.S. productivity rose 8.4% between January and March, its largest rise since the second quarter of 1983, Labor said.

Productivity gains, which reflect the ratio of output to hours worked, can be a double-edged sword, analysts told the Associated Press.

They are an essential factor in maintaining long-term economic growth without inflation, but, early in a period of economic recovery, productivity gains may only reflect that companies are not yet rehiring those displaced during the recession.

The figures for the first quarter are a significant improvement over the revised 5.5% increase in productivity in the final three months of 2001.

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