Consumer confidence rebound more than expected in September, to a seven-month high, rising to 70.3. This comes after a dip to 60.3 in August. Most economists had projected only 63.1, but higher home prices and a rise in stock values may have helped improve economic morale.
"The Consumer Confidence Index rebounded in September and is back to levels seen earlier this year," said Lynn Franco, director of economic indicators at The Conference Board, the organization that researches and compiles the index. Levels reached 71.6 in February of this year.
"Consumers were more positive in their assessment of current conditions, in particular the job market" said Franco, "and considerably more optimistic about the short-term outlook for business conditions, employment and their financial situation. Despite continuing economic uncertainty, consumers are slightly more optimistic than they have been in several months."
The trend will continue, albeit at a measured pace, according to Russell Price, senior economist at Ameriprise Financial Inc., speaking to Bloomberg News. "The turn in housing is huge. Stock market gains are also significant," he said. "These two factors indicate improvement in net worth that's really making people feel better about their finances."
While the unemployment rate is still above 8 percent, there is good news for job-seekers, with 15.5 percent of consumers saying business conditions are "good," up from 15.3 percent in August.
Though 33.3 percent said business conditions are "bad," that is down from 34.3 percent last month.
The outlook improved for the labor market, job-seekers, and incomes, as well. The percentage of respondents expecting more jobs in the coming months jumped 2.7 percent, to 18.5, also a seven-month high. And 16.3 percent of consumers expect their income to increase, the highest level seen this year.
While 39.9 percent of respondents claim jobs are still "hard to get," that is down from 40.6 percent last month. Fewer claimed jobs are "plentiful," though that rate rose from 7/2 percent in August to 8.3 percent this month.
