ZCZC
BCN-17
US-ECONOMY-CONSUMER-CONFIDENCE-INDICATOR
US consumer confidence approaches all-time high
WASHINGTON, Sept 26, 2018 (BSS/AFP) – Confidence among American consumers
in September rose unexpectedly for the second month in a row, hovering near
an 18-year high, according to a survey released Tuesday.
The survey showed a sharp gain in optimism among consumers, with
respondents apparently shrugging off worries about inflation and a trade war
with China, and point to continued healthy spending boosting the economy.
The consumer confidence index rose nearly four points to 138.4, with views
about current conditions rising modestly but with a six-point surge in
expectations to 115.3, according to the Conference Board’s monthly report.
Forecasts had called for a modest decline in the closely-watched reading
of consumer sentiment.
“The September reading is not far from the all-time high of 144.7 reached
in 2000,” Lynn Franco, the Conference Board’s director of economic
indicators, said in a statement.
“Consumers’ assessment of current conditions remains extremely favorable,
bolstered by a strong economy and robust job growth.”
The bump in expectations points to economic growth of higher than three
percent in the remainder of 2018, Franco said.
“These historically high confidence levels should continue to support
healthy consumer spending, and should be welcome news for retailers as they
begin gearing up for the holiday season,” she said.
The cutoff for the survey was September 14, meaning it would not have
captured any reaction to US President Donald Trump’s latest move to slap
tariff on a whopping $200 billion in additional Chinese imports, almost
undoubtedly increasing consumer costs.
But so far confidence measures have appeared undisturbed by trade
tensions.
The consumer outlook about the next six months were upbeat, with a growing
share of respondents expecting conditions to improve and jobs to become more
plentiful.
There was, however, a marginal decrease in the share of people expecting
their incomes to increase in the short term.
BSS/AFP/HR/0952