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Consumer Confidence Spikes Near 8-Year High Amid Global Turmoil But "Hope" Fades

For the second month in a row, US Consumer Confidence (according to The Conference Board) soared in September. Printing 103.00 (smashing expectations of 96.8) in September, this is just shy of January's high going back to August 2007. The biggest driver of this seemingly odd exuberance (amid global escalation in financial and physical wars) is the Present Situation (up from 115.8 to 121.1) while "hope" dropped from 91.6 to 91.0.

 

 

As The Conference Board explains...

“Consumer confidence increased moderately in September, following August’s sharp rebound,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ more positive assessment of current conditions fueled this month’s increase, and drove the Present Situation Index to an 8-year high (Sept. 2007, Index=121.2). Consumers’ expectations for the short-term outlook, however, remained relatively flat, although there was a modest improvement in income expectations. Thus, while consumers view current economic conditions more favorably, they do not foresee growth accelerating in the months ahead.”

 

 

Consumers’ appraisal of current conditions was more positive in September. Those saying business conditions are “good” increased from 23.7 percent to 28.0 percent, while those claiming business conditions are “bad” declined modestly from 17.8 percent to 16.7 percent. Consumers were somewhat mixed about the job market. Those stating jobs are “plentiful” increased from 22.1 percent to 25.1 percent, however those claiming jobs are “hard to get” also rose from 21.7 percent to 24.3 percent.

Charts: Bloomberg