U.S. consumer confidence rose in August - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

U.S. consumer confidence rose in August

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Sunday, September 1, 2013 9:45 am

Americans’ confidence in the economy inched closer to a 5 1/2-year high on growing optimism that hiring and wages could pick up in coming months.

The Conference Board, a New York-based private research group, said last Tuesday that its consumer confidence index rose to 81.5 in August. That’s up from a revised reading of 81 in July. And it’s just below the 82.1 reading in June, which was the highest since January 2008.

Consumers’ income expectations, which fell earlier this year after a January tax hike, rebounded to the highest level in 2 1/2 years, said Lynn Franco, director of the Conference Board’s economic indicators.

Although consumers were more confident about the future, their assessment of the current economy dipped slightly in August.

“Consumer sentiment is holding steady, supported by advances in stocks, solid job creation, and a broad-based recovery in the housing market,” Jim Baird, chief investment officer at Plante Moran Financial Advisors, wrote in a research note.

Consumers’ confidence in the economy is watched closely because their spending accounts for about 70 percent of U.S. economic activity.

After hitting bottom at 25.3 at the depths of the Great Recession in February 2009, the index has bounced back. But it has yet to get back to the 90 reading that signals a healthy economy.

Americans’ confidence jumped in June on hopes that the job market was starting to turn around. The economy has created an average of 192,000 jobs a month this year, slightly ahead of last year’s pace. And the unemployment rate fell last month to a 4 1/2-year low of 7.4 percent.

Still, unemployment remains painfully high four years after the recession officially ended. And employers added just 162,000 jobs in July, the fewest in four months. That raised worries that the sluggish economy could slow any progress made earlier in the job market.

The U.S. economic recovery has been held back this year by tax hikes, federal spending cuts and weaker global growth. The economy expanded at just a 1.7 percent annual rate in the April-June quarter. Most economists expect that figure will revised up to a 2.2 percent annual rate, mostly because of a jump in June exports.

The government issues its second estimate for second-quarter growth on Thursday. Most analysts predict growth may pick up to about a 2.5 percent annual rate in the second half of the year.

Still, recent data suggest the July-September quarter is off to a weak start, leading some economists to trim their third-quarter forecasts.

On Monday the government said orders for long-lasting U.S. factory goods fell sharply in July, in part because businesses cut back sharply on big purchases that signal investment plans.

And U.S. sales of newly built homes dropped 13.4 percent last month to a seasonally adjusted annual rate of 394,000. That’s the lowest level in nine months, raising worries that higher mortgage rates could slow the housing recovery.

Mortgage rates have risen sharply since May when Chairman Ben Bernanke first signaled the Federal Reserve could reduce its bond purchases later this year, if the economy strengthens. The bond purchases have kept long-term interest rates low, making home-buying, auto loans and other consumer loans cheap.

© 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

More about

More about

More about

  • Discuss

Six Things I Love About the Hacienda Del Sol Guest Ranch Resort

Shares 79I’ll admit it.  When it comes to hotels stays, I am particular.  I expect a hotel I am paying good money for to be immaculately clean…

Published: September 29, 2016 - 1:04 am @ http://acorkforkandpassport.com/hacienda-del-sol-g…

Arizona State Fair Food: 38 new deep-fried treats and desserts to try at this year's fair (Oct 7-30)

PHOENIX - Last year , the new food items to the Arizona State Fair were the deep-fried Red Velvet Cupcake and the Spaghetti Ice Cream. (We're …

Published: September 29, 2016 - 12:02 am @ http://www.abc15.com/entertainment/events/arizona-…

Ariz. paper faces threats, loses subscribers after Clinton endorsement

The Arizona Republic is suffering some major blowback for its decision to back a Democrat over a Republican in a presidential campaign for the…

Published: September 28, 2016 - 11:42 pm @ http://www.usatoday.com/story/news/politics/onpoli…

Prescott Patriots

See more of Prescott Patriots by logging into FacebookMessage this Page, learn about upcoming events and more. If you don't have a Facebook ac…

Published: September 28, 2016 - 11:01 pm @ https://www.facebook.com/PrescottPatriots/

This Fiercely Conservative Newspaper Is Endorsing A Democrat For The First Time Ever (VIDEO)

The Arizona Republic has a long and storied history of endorsing Republicans for president. That has now changed, and for the first time in th…

Published: September 28, 2016 - 10:00 pm @ http://reverbpress.com/politics/this-fiercely-cons…

From Phoenix to Mesa, Here's Your Guide to Public Art on the Light Rail

Lynn Trimble A A Looking for a diverse assortment of art by artists in and beyond Arizona? Consider jumping on the Valley Metro Light Rail, wh…

Published: September 28, 2016 - 9:10 pm @ http://www.phoenixnewtimes.com/arts/from-phoenix-t…

Arizona Cardinals: 5 bold predictions vs Rams

The Arizona Cardinals will be looking to get back on the winning track on Sunday afternoon, facing the Los Angeles Rams at 1:25 p.m.  It will …

Published: September 28, 2016 - 8:59 pm @ http://raisingzona.com/2016/09/28/arizona-cardinal…

Donald Trump to pay another visit to Arizona next week

PHOENIX — Republican presidential nominee Donald Trump is coming back to Arizona next week, but will not be in the Phoenix area this time arou…

Published: September 28, 2016 - 8:40 pm @ http://ktar.com/story/1293708/back-for-more-donald…

U.S. ELECTION WRAP: Clinton Vows to Work With Sanders on Agenda

Hillary Clinton hit the campaign trail in New Hampshire with former rival Senator Bernie Sanders in a bid to ignite enthusiasm among hard-to-g…

Published: September 28, 2016 - 8:36 pm @ http://www.bloomberg.com/politics/articles/2016-09…

California shooting victim had ties to Arizona; man shot by police 1 minute after arriving

GLENDALE, AZ - Police in the San Diego suburb of El Cajon shot and killed a black man a minute after arriving near a strip mall to investigate…

Published: September 28, 2016 - 7:28 pm @ http://www.abc15.com/news/state/california-shootin…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…