Institutional investor confidence rose a little in May, according to the State Street Investor Confidence Index.

In May, the index increased by 2.9 points to 85.9 from April’s revised reading of 83.0. Looking regionally, the confidence of North American institutional investors displayed a solid increase from 93.1 to 98.8. By contrast, the confidence of European investors declined from 96.4 to 91.9, and the confidence of Asian investors slid to 76.1 from 78.5.

“Globally, investor confidence has bounced solidly off the lows it attained in January and February of this year,” commented index co-founder Harvard University professor Ken Froot. “While we have seen some nervousness very recently associated with volatility in commodities prices and inflation expectations, the overall backdrop is one that suggests institutional investors see improved opportunities in the medium term.”

“The increase in global confidence masks some regional divergence,” added State Street Associates director Paul O’Connell. “European investors, who have been ebullient this year, showed a tendency toward consolidation this month. Asian investors continued to display a diminished appetite for risky assets, as yield differentials continue to improve the relative attractiveness of cash. North American institutional investors saw a continuation of the improvement in confidence that began last March.”

The index measures investor confidence on a quantitative basis, analyzing actual buying and selling patterns of institutional investors.