Confidence by consumers in the U.S. climbed higher that it has been in over four years
November 02, 2012- Confidence by consumers in the U.S. climbed higher that it has been in over four years, which might help drive the economy even more. The Conference Board’s monthly sentiment index was up to 72.2, the highest level it has seen since February of 2008. The rate jumped from September’s revised figure of 68.4. The figure had been projected to increase to as high as 73, said information an average estimate of Wall Street economists.
The percentage of respondents saying jobs are plentiful at the current time increased to its highest since September of 2008, which indicates that the drop in unemployment is brightening the moods of most Americans. A drop in gasoline prices and the resurgence of the housing market are also helping to improve the confidence of Americans.
The net worth of the household is once again rebounding, slowly, but rebounding particularly with the prices of houses starting to increase. Many consumers are feeling more confident about spending money on larger ticket items, said an economist from New York.
Stocks increased on Thursday on the news, and were helped by the first round of unemployment numbers showing that fewer people applied for first time benefits than last week. In addition, companies grew payrolls during October by the most in the past eight months. Manufacturing was up higher for October than what had been forecasted.
An index that follows manufacturing was up last month to 51.7, which is the highest the index has been since May. Last month the index was 51.7, the group from Tempe, Arizona said. Economists had projected that for October the rate would be 51. A rate of 50 is the equilibrium point between shrinkage and growth for manufacturing.
The housing recovery has brightened many consumers’ moods. Prices on homes increased 2% from one year ago, the biggest gain in a 12-month period since the middle of 2010.