Consumer Confidence Soars
Kurt Brouwer July 31st, 2007
In July, consumer confidence hit a six-year high, the highest point we have seen since August of 2001. Now, that’s a milestone when you consider that in September 2001, we suffered the worst terrorist attack in our history, which was accompanies by a steep albeit short recession.
Anne D’Innocenzio, AP Business Writer reports:
‘…The New York-based Conference Board said that its Consumer Confidence Index, rebounded to 112.6, its highest level since August 2001 when it recorded a 114.0 reading…’
“An improvement in business conditions and the job market has lifted consumers’ spirits in July,” said Lynn Franco, director of The Conference Board Consumer Research Center. “Looking ahead, consumers are more upbeat about short-term economic prospects, mainly the result of a decline in the number of pessimists, not an increase in the number of optimists. This rebound in confidence suggests economic activity may gather a little momentum in the coming months.”
This shows that Americans are optimistic despite all the obvious negatives we have experienced in the past year or so.
‘…”It is encouraging in light of high energy prices, volatility of the stock market and the weak housing market that consumers didn’t flinch,” said Mark Vitner, senior economist with Wachovia Securities in Charlotte, N.C. “My general sense is that the economy is finding its footing.”
I have to admit that I have wondered how Americans would respond to high gasoline prices, troubles in Iraq, higher interest rates, home building and financing woes, terrorist threats, the declining dollar and more. Answer: Americans have taken the measure of these negatives and are pretty upbeat and optimistic. Long may it continue.
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