Consumer Confidence Is the Highest in 7 Months
The New York Times
The Conference Board, an industry group, said its index of consumer attitudes rose to 70.3 from an upwardly revised 61.3 in August. It was the highest since February and topped economists’ expectations of 63, according to a Reuters survey.
With consumer spending accounting for two-thirds of economic activity, analysts are eager to see the improving attitudes translate into more buying.
“It does bode well for spending down the road,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
The expectations index rose to 83.7, from 71.1, and the present situation index to 50.2 from 46.5.
Consumers were more optimistic on both the current and short-term outlook for the labor market, and had a more favorable view of their income prospects in the next six months.
Consumers also felt better about price increases, with expectations for inflation in the next 12 months down to 5.8 percent from 6 percent.