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Business Title: U.S. Consumer Confidence Jumps as Americans Perceive Improved Job Market March 30 (Bloomberg) -- Confidence among U.S. consumers climbed in March as Americans perceived employment was starting to improve. The Conference Board’s confidence index rose to 52.5, exceeding the median forecast of economists surveyed by Bloomberg News, from 46.4 in February, the private research group’s report showed today. Another report showed home prices rose in January. “With signs of improvement in the labor market, confidence is more likely to be up than down in the next few months,” said James O’Sullivan, chief economist at MF Global Ltd. in New York, who forecast sentiment would pick up. “It’s still a low level of confidence.” Gloom is lifting as firings slow and the expansion that began in the middle of 2009 is on the cusp of prompting companies to boost payrolls. More jobs will be needed to sustain the recent gains in consumer spending, which accounts for about 70 percent of the economy. Stocks climbed after the reports, with the Standard & Poor’s 500 Index rising 0.1 percent to 1,176.87 at 10:25 a.m. in New York. Treasury securities fell, sending the yield on the benchmark 10-year note up to 3.88 percent from 3.87 percent late yesterday. Exceeds Forecast Economists forecast confidence would rise to 51 for the month from a previously reported 46, according to the median of 73 projections in a Bloomberg News survey. Estimates ranged from 46.6 to 59. Home prices in 20 U.S. cities unexpectedly rose in January, indicating the housing market is stabilizing as the economy expands, another report today showed. The S&P/Case-Shiller home-price index climbed 0.3 percent from the prior month on a seasonally adjusted basis after a similar gain in December. The gauge was down 0.7 percent from January 2009. The Conference Board’s measure of present conditions increased to 26, the highest level since May, from 21.7 in February. The gauge of expectations for the next six months rose to 70.2 from 62.9. The share of consumers who said jobs are plentiful advanced to 4.4 percent from 4 percent. The proportion of people who said jobs are hard to get decreased to 43.8, the fewest since August. Gloom Lifting The proportion of people who expect their incomes to increase over the next six months rose to 10.5 percent from 10.1 percent in February. The share expecting more jobs in the next six months increased to 14.6 percent from 13.2 percent. “Despite this month’s increase, consumer continue to express concern about current business and labor market conditions,” Lynn Franco, director of the Conference Board’s consumer research center, said in a statement. “Overall, consumer confidence levels have not changed significantly since last spring.” The group’s measure averaged 45 in 2009, and 97 during the expansion that ended in December 2007. Federal Reserve officials last week signaled the U.S. recovery isn’t strong enough to stoke inflation, reduce unemployment quickly or justify an end to record-low interest rates. While the economy has “continued to strengthen,” Fed policy makers said in a statement after their March 16 meeting that “employers remain reluctant to add to payrolls.” The U.S. may have recorded its biggest month of job gains in three years in March. Economists expect the Labor Department to report on April 2 that 184,000 jobs were added this month, according to a survey median. Jobless Forecast Even so, the unemployment rate is projected to end the year at 9.5 percent, showing the labor market will continue to be a challenge to consumers this year, according to a survey of economists taken by Bloomberg earlier this month. The rate reached 10.1 percent in October, the highest level since 1983. A report yesterday showed consumer spending rose for a fifth consecutive month in February. Purchases increased 0.3 percent, following a 0.4 percent gain in January, and incomes were unchanged, Commerce Department data showed. Nike Inc., the world’s largest maker of athletic shoes, said this month that third-quarter profit more than doubled, beating analysts’ estimates, as North America posted a sales increase for the first time in a year. Best Buy Co., the largest U.S. electronics retailer, last week reported fourth-quarter profit that exceeded analysts’ estimates. Sales at the Richfield, Minnesota-based company were boosted by cutting prices on flat-panel TVs and offering discounts during the holidays.
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#1. To: Brian S (#0)
Riiight, cause this 'index' has such a great track record the past four years....(eyes rolling)
my anti groupie can't get through life without me.
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