Medill Reports

Consumers were more confident about the U.S. economy in May, according to the New York-based Conference Board, which said its closely watched index of consumer confidence climbed more than 14 points to 54.9 from a revised 40.8 in April.

The jump in consumer confidence reported Tuesday far exceeded analysts’ expectations for a reading of 42.6 in May, according to Bloomberg LP, and puts the index at its highest level in eight months.

Expectations for the economy over the coming six months, considered a leading indicator for consumer spending, rose sharply to 72.3 in May from 51 in April.

“Consumers and firms may have judged that the worst is indeed behind us,” said Joseph Brusuelas, director of Moody’s Economy.com Inc.

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The 90th annual National Restaurant Association Show will kick off Saturday at McCormick Place with fewer exhibitors and lower attendance expected than in past years.

Though thousands of exhibitors are scheduled to attend the convention, the Chicago Convention and Tourism Bureau acknowledged that this year’s gathering will be smaller than in 2008.

“Like many of our conventions that are coming in, [exhibitors] are sending fewer exhibit personnel, and attendees may be attending for fewer days,” bureau spokeswoman Meghan Risch said.

Convention participants corroborated Risch’s assessment Thursday as preparations got under way for the four-day event.

Commercial food-equipment manufacturer Hobart LP, a perennial attendant, did not downsize its booth but did bring less equipment and fewer employees in response to economic pressures, said trade marketing manager Joyce Grooms, who has managed Hobart’s exhibit for eight years.

“I scaled back about 40 percent [on equipment] over last year” to minimize transportation costs, Grooms said.

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With Chicago hotels operating at less than half capacity, air travel down and business conventions being canceled, state and city travel officials held a rally Tuesday at Navy Pier for the embattled tourism industry.

A crowd of about 150 gathered on the Lakeview Rooftop Terrace to hear officials sing the praises of tourism industry employees and announce initiatives designed to jumpstart travel.

“We want to leverage Chicago’s reputation as a city that means business” to combat the “erosion” of convention attendance, Chicago Convention & Tourism Bureau President and Chief Executive Officer Tim Roby said. The bureau is launching an Internet advertising campaign on May 18 geared toward luring business travelers to the city and encouraging local businesses to “keep their business here,” he said.

The city’s convention and tourism bureau, along with the Chicago Office of Tourism and the Illinois Department of Commerce and Economic Opportunity, hosted the rally in conjunction with the 26th annual National Travel and Tourism Week. More than 35 cities across the country also held rallies.

Director of the Illinois Bureau of Tourism Jan Kostner emphasized “budget-friendly” travel options and cited increased inquiries on the bureau’s Web site during the last year as evidence that “people still want to travel.”

“I’m cautiously optimistic,” he said. “I think we’re going to start moving in the right direction. I don’t think it’s going to go from zero to 100.”

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Most Mother’s Days, Sue Kaczor goes out to dinner with her family to celebrate. But the slumping economy, which has cost one of her sons-in-law his job, means she is staying home this Sunday.

“We’re making dinner instead of going out to eat and making home-made margaritas,” said Kaczor, who was recently shopping for her two daughters and sister at a Hallmark Cards store in the Loop.

With the economy in recession, Kaczor said she does not expect extravagant gifts this year.

“We’re all in the same boat,” she said. “It’s about the fun, not just the gifts.

The situation in Kaczor’s household will be mirrored around the country, according to a recent National Retail Federation survey of 8,667 consumers. The survey found that Americans will spend an average of $123.89 per person on Mother’s Day gifts, compared with last year’s average of $138.63.

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