Business
See other Business Articles
Title: U.S. Consumer Confidence Rises to Highest Level Since 2008 on Job Optimism
Source:
Bloomberg
URL Source: http://www.bloomberg.com/apps/news? ... 0601087&sid=aTbMs4LNHMds&pos=2
Published: May 25, 2010
Author: By Courtney Schlisserman
Post Date: 2010-05-25 11:11:28 by Brian S
Keywords: None
Views: 771
Comments: 7
May 25 (Bloomberg) -- Confidence among U.S. consumers increased in May to the highest level since March 2008 as Americans became more upbeat about job prospects. The Conference Board’s confidence index rose to 63.3, exceeding the highest estimate in a Bloomberg News survey, from a revised 57.7 in April, figures from the New York-based private research group showed. The gauge was forecast to rise to 58.5, according to the survey median. A measure of expectations surged to the highest level since August 2007. Pessimism is beginning to fade as the expansion that began in the middle of 2009 begins to create the jobs needed to encourage Americans to spend. Confidence is still at risk of stalling as Europe’s debt crisis pushes stock prices lower and chips away at household balance sheets. “The economy is doing better, employment is finally picking up and as a result, people are starting to feel like things are improving,” said Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut. “I’m relatively optimistic that we’ll get through the European debt crisis without dire economic consequences but the jury is still out.” Stocks Fall Stocks fell around the world on concern Spain’s ailing banks signal a widening European debt crisis and tension mounted on the Korean peninsula. The Standard & Poor’s 500 Index declined 1.9 percent to 1,053.82 at 10:21 a.m. in New York. The 10-year Treasury note rose, pushing down the yield 5 basis points to 3.15 percent after earlier touching 3.06 percent, the lowest since April 29, 2009. Economists forecast confidence would rise from a previously reported 57.9 in April, according to the median of 72 projections in the Bloomberg survey. Estimates ranged from 53 to 62.8. Another report showed home prices in 20 U.S. cities rose less than forecast in March from a year earlier, a sign the housing recovery is cooling. The S&P/Case-Shiller home-price index of property values in 20 cities increased 2.3 percent from March 2009. The median forecast of economists surveyed by Bloomberg projected a 2.5 percent advance. Nationally, prices last quarter dropped 3.2 percent from the prior three months. The Conference Board’s measure of present conditions increased to 30.2 this month, the highest since December 2008, from 28.2 in April. The gauge of expectations for the next six months surged to 85.3 from 77.4. Jobs Outlook The percent of respondents expecting more jobs to become available increased to 20.4, the highest since December 2003, from 17.7 in April. The proportion who expect their incomes to rise over the next six months increased to 11.3 percent from 10.5 percent. In contrast, the share of consumers who said jobs are currently plentiful fell to 4.6 percent from 4.7 percent. Those who said jobs are hard to get decreased to 43.6 percent from 44.8 percent. The Conference Board measure still lags behind the 97 average of the most recent expansion, which ended in December 2007. Confidence, “although still weak by historical levels, appears to be gaining traction,” Lynn Franco, director of the Conference Board Consumer Research Center, said in a statement. Expectations have been “fueled primarily by growing optimism about business and labor market conditions,” she said. Sales in May The jump in confidence may not be accompanied by a similar gain in sales. Purchases at U.S. retailers will climb 2 percent to 2.5 percent this month, less than forecast, the International Council of Shopping Centers said. The pace of store visits was “uneven” and consumer spending “softer,” Mike Niemira, the group’s chief economist, said today in a statement. Today’s report compares with the preliminary reading of the Thomson Reuters/University of Michigan index, which showed its confidence level rose to 73.3 this month, from 72.2 in April. The group is scheduled to release its final report for May on May 28. The labor market has shown signs of improvement. The U.S. has added jobs every month this year. Payrolls increased by 290,000 in April, the most in four years, after a 230,000 gain in March, Labor Department figures showed May 7. The unemployment rate rose to 9.9 percent as more people entered the labor force looking for work. More Spending The strengthening of the labor market has coincided with a pickup in Americans’ purchases. Consumer spending increased 3.6 percent in the first quarter, the most since the same three months in 2007, Commerce Department figures showed April 30. Spending probably rose at a 0.3 percent rate in April, according to the median projection in a Bloomberg survey before a government report later this week. Target Corp., the second-largest U.S. discount retailer, posted first-quarter earnings on May 19 that beat analysts’ projections, helped by clothing sales. Net income rose 29 percent to $671 million from $522 million a year earlier. Shoppers are returning to stores as the economy rebounds. Chief Executive Officer Gregg Steinhafel cited a better-than- expected economic environment that boosted sales of profitable items such as clothes.
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: Brian S (#0)
the market isn't reflective so far, way down today on European and Korean uncertainty.
Being a Republican means you get to choose your own reality.
Rotflmao. Ya think?
For approximately 72K, BP Oil bought Owe-bama. And as President, he let them Spill, Baby, Spill! Its documented.
Two weeks ago, you rejected this as a market factor.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
In other news from Pluto . . . If I could, I would. Is that you byeltsin?
Nope. I ain't the one claiming the economy's humming along. That would be BrianS. And YOU, perhaps . . . ?
If I could, I would. Correct on all...(chuckle)
For approximately 72K, BP Oil bought Owe-bama. And as President, he let them Spill, Baby, Spill! Its documented.
#2. To: go65 (#1)
the market isn't reflective so far, way down today on European and Korean uncertainty.
#3. To: Badeye (#2)
#4. To: Brian S (#0)
U.S. Consumer Confidence Rises to Highest Level Since 2008 on Job Optimism
But I can't, so I won't.
#5. To: Ignore Amos, BorisY (#4)
#6. To: Fred Mertz (#5)
Is that you byeltsin?
But I can't, so I won't.
#7. To: Ignore Amos (#6)
Top • Page Up • Full Thread • Page Down • Bottom/Latest
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]