Stores are busy announcing holiday hirings, home values are rising and American are feeling pretty darn good about all of that. So good, in fact, that a new survey of consumers shows we’re the most confident we’ve been about the economy for seven months.
Consumer confidence is super important because how much we spend, where we spend and how often we splash out drives almost 70% of economic activity, notes ABC News.
The Conference Board’s index of consumer confidence jumped big time in September, which surprised many as hiring numbers and retail sales haven’t been so inspiring lately. That index went from 61.3 in August to 70.3 in September, still a long way away from 90, which is what we’re shooting for to reflect a healthy economy.
The index has spiked before, only to fall again, which worries economists that this recent surge won’t hold. But hey, a little confidence goes a long way, say experts. As long as we’re working toward improvement, things are good.
“The economy is perceived in relative rather than absolute terms,” noted one St. Louis University political scientist and pollster.
The confidence survey polled 500 people, and found that consumer confidence in the economy now and their outlook for the next six months both rose.