U.S. consumer confidence hits 9-year high

Consumer confidence in the U.S. rose in September to the highest level in nine years.

The Conference Board says that its consumer confidence index rose to 104.1, up from 101.8 in August. It was the strongest reading since the index stood at 105.6 in August 2007–four months before the beginning of the Great Recession of 2007-2009.

The increase was better than expected, given private economists had been forecasting the index would drop in September after a strong August reading.

The September gain was propelled by an improvement of consumers’ views about the labour market.

In a CIBC Capital Markets Research note, Royce Mendes says, “August wasn’t a great month for U.S. data releases, but September is beginning on a better note. The Conference Board’s index of consumer confidence rose […] and [this] is an indication that the recent weakness in retail sales reports could be just a bump in the road on the ongoing path toward stronger consumer spending.”

he also notes “a modest drop in the intentions to buy for autos, homes and major appliances, but each of those still remain around the higher end of the range that they have been in recently. All told, while this indicator is unlikely to move markets today, it is a small step in the right direction for the US economy.”

Staff, with files from The Associated Press

The Associated Press is an American not-for-profit news agency headquartered in New York City.