Online Calculator | United States Economy Appearing Far Better Using The Consumer Confidence Report

United States Economy Appearing Far Better Using The Consumer Confidence Report

The consumer confidence index showed the economic perspective going up a few points on the metric used to gauge it. It showed this within the Conference Board’s monthly report in August. This is the reason the stock exchange went up Tuesday.

Better outlook with consumer confidence index

Consumer confidence rose in August to beat predictions. Bloomberg showed that a five month low of 51 points within the consumer confidence index was shown in July while in August it went up to 53.5. This shows the economy may really be getting far better rather than going down as everybody expected. Bloomberg spoke to an economist that said the August consumer confidence level was still a “stunningly low level,” even after the increase. Even so, higher confidence brings a ray of hope that consumer spending — 70 percent of the United States of America economy — will recover. To do that, businesses have to start hiring more. From May to July, 51,000 jobs were created, which is down from 200,000 the last two months, reports the Labor Department.

Consumer confidence report info

In addition to the consumer confidence index, the Conference Board report contains other details. Consumers know the economy is bad right now but hope the future is better, says MarketWatch. The Conference Board’s present-situation index — a measure of attitudes about business climate and job opportunities — dropped to 24.9 in August from 26.4 in July. The expectations index — a measure of expectations for a better business climate and more job creation — rose to 72.5 in August from 67.5 in July. 1.9 percent to 2 percent was how the consumers planning to buy a home moved. You will find no 5 percent of people planning to purchase an automobile, versus the 4.7 percent from before. An economist told MarketWatch that despite the August gains, consumer confidence is at “incredibly depressed levels,” in contrast to previous economical recoveries.

Bump in index doesn’t guarantee consumer spending

A consumer confidence index above 90 suggests a healthy economy, according to the Associated Press. Tuesday morning, there was still a change within the stock market as a result of August bump. About two stocks rose for every one that fell on the New York Stock Exchange. This likely will not last for long. Consumer spending may not increase though with the consumer confidence increase considering economic reports typically show that financial growth is going very slowly. A high unemployment rate continues to motivate consumer saving and debt reduction — behavior considered virtuous from a personal finance standpoint. But until the job market recovers and individuals open their wallets, the late-summer slump could continue for the rest of the year and drag the U.S. overall economy into a double-dip recession.

More on this topic

Bloomberg

bloomberg.com/news/2010-08-31/consumer-confidence-in-u-s-rose-more-than-economists-forecast-in-august.html

MarketWatch

marketwatch.com/story/august-consumer-confidence-rises-to-535-2010-08-31-102600

Associated Press

google.com/hostednews/ap/article/ALeqM5jmT59dgLTTziX4p9X9MRBRpWZGdQD9HUH2I80

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