by Calculated Risk on 5/17/2013 09:55:00 AM

Click on graph for larger image.

The preliminary Reuters / University of Michigan consumer sentiment index for May increased to 83.7 from the April reading of 76.4. This is the highest level since July 2007.

This was well above the consensus forecast of 78.0. Sentiment has generally been improving following the recession - with plenty of ups and downs - and one big spike down when Congress threatened to "not pay the bills" in 2011.