U.S. Consumer Confidence Rises to Highest Level Since September 2008

April 26, 2010  by in UnCategorized   

By Home Furnishings Business in economic news on April 27, 2010 Consumer confidence hit its highest level since September 2008 this month hitting 57.9, up from 52.3 in March. In September 2008, the index was at 61.4.

The Present Situation Index increased to 28.6 from 25.2, and the Expectations Index improved to 77.4 from 70.4.

The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households.

"The Index is now at its highest reading in about a year and a half," said Lynn Franco, director of the Conference Board. "Consumers€™ concerns about current business and labor market conditions eased again. And, their outlook regarding business conditions and the labor market was also more positive than last month. Looking ahead, continued job growth will be key in sustaining positive momentum."

Consumers€™ appraisal of present-day conditions was more positive in April. Those claiming conditions are "good" increased to 9.1 percent from 8.5 percent, while those claiming business conditions are "bad" declined to 40.2 percent from 42.1 percent. Consumers€™ appraisal of the labor market also improved. Those saying jobs are "plentiful" increased to 4.8 percent from 4.0 percent, while those saying jobs are "hard to get" decreased to 45.0 percent from 46.3 percent.

Consumers€™ outlook was also brighter in April. The percentage of consumers expecting business conditions will improve over the next six months increased to 19.8 percent from 18.0 percent, while those expecting conditions will worsen declined to 12.6 percent from 13.6 percent.

Consumers were also more optimistic about the job outlook. The percentage of consumers anticipating more jobs in the months ahead increased to 18.0 percent from 14.1 percent, while those anticipating fewer jobs declined to 20.0 percent from 21.4 percent. The proportion of consumers anticipating an increase in their incomes declined to 10.3 from 10.8 percent.