Consumer Comfort in U.S. Rises to Five-Year High on Economy View
By Alexandria Baca - Aug 1, 2013
Consumer confidence climbed last week to the highest level in more than five years as Americans became less pessimistic about the economy.
The Bloomberg Consumer Comfort Index rose to minus 27 in the period ended July 28, the strongest reading since January 2008, from minus 27.3 a week earlier. The margin of error for the headline figure is 3 percentage points. Measures of personal finances and buying climate were also little changed.
Rising residential property values and sustained gains in the labor market have helped improve consumers’ sentiment, which may spur greater spending in the second half of 2013. The figures signaled households are looking past rising borrowing costs as the expansion continues and gasoline prices at the pump retreat from four-month highs.
“Sustainable, albeit modest growth in the labor market and the economy likely bolstered consumer spirits,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “The key to sustained improvement is acceleration in hiring and an improved wage environment, something that has been a significant challenge during the current business cycle.”
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http://www.bloomberg.com/news/2013-08-01/consumer-comfort-in-u-s-rises-to-five-year-high-on-economy-view.html
