United States: Consumer confidence hits pre-crisis high in September
September 27, 2016
Following an increase in August, when the Conference Board’s consumer confidence index jumped to 101.8 points, consumer sentiment among U.S. households rose further in September. The indicator climbed to 104.1 points, the highest reading since August 2007. The result took the markets by surprise, as analysts had expected the indicator to moderate to 99.0 points. Strong consumer sentiment suggests consumer spending will continue to support economic growth.
The improvement in consumer sentiment reflected a pickup in households’ forward-looking expectations as well as their assessment of the present situation. In addition, the “labor differential”, which is the percentage of respondents reporting that jobs are plentiful less the percentage reporting that jobs are hard to get, also improved notably in September.
Author: Ricardo Aceves, Senior Economist