Consumer Confidence in U.S. Rises to Highest Level in Four Years

[Purveyor]

Source: Bloomberg

Household confidence improved last week to a four-year high as more Americans said the economy was improving and decided it was a good time to shop.

The Bloomberg Consumer Comfort Index (COMFCOMF) was minus 36.7 in the period ended March 4, the highest since April 2008, up from minus 38.8 in the prior period. The gauge on the state of the economy reached a one-year high, while the buying-climate measure climbed to a level last exceeded in December 2009.

For a fifth straight week, half of those surveyed also rated their personal finances as positive, bolstered by a resilient stock market, faster job growth and rising wages. Stronger household balance sheets may be helping ease the sting of the steepest gasoline prices in almost a year.

“Consumers are much more comfortable about their own personal financial situations, which is largely negating the recent rise in gasoline prices,” said Joe Brusuelas, a senior economist at Bloomberg LP in New York. “That said, consumer confidence remains at the low end of the historical range.”

Read more: http://www.bloomberg.com/news/2012-03-08/u-s-consumer-confidence-reaches-a-four-year-high-bloomberg-index-shows.html

[Skittles]

1. keep it coming

[xtraxritical]

2. Now's the time to go long.

I bought calls on DIA at DOW 12744. I expect the DOW will breach 13000 tomorrow. Go Obama!!!!!

[snappyturtle]

3. I hope this continues...still a long way from the average minuses.

I'd like to also know who is surveyed. How much is being bought on credit? Is it a "....good time to shop" because the sales are so-o good? Are people finally having to buy replacements for worn out goods? What types of jobs are included in 'job growth'? Where (demographics) are wages rising and how much? I know, too many questions but..........

Believe me although I'm a bit skeptical I hope the news in the op is sustainable and continues to show growth.

[Selatius]

4. If they're high-paying manufacturing jobs, chances are the recovery is sound.

If most of the jobs are, on the other hand, lower wage service sector jobs, there's not much to build on except cheap credit. With interest rates at absolute historic lows, it's easier than ever to borrow money to prop up finances and plow money into the stock market. In fact, quantitative easing over at the Federal Reserve is what is likely pushing up the Dow Jones. Without easy money, people wouldn't have the kind of money needed to support the Dow or any stock index.