On Tuesday, Conference Board reported the consumer-confidence index, which showed an increase in U.S. consumer confidence, reaching its highest level since 2007.
According to the report from Conference Board, the consumer-confidence index rose to 104.1 in September, which was above the prediction of 99.0, and surpassed the revised 101.8 in August 2007. This is the highest level in nine years since August 2007, which signed the start of the financial crisis.
In the report, the index that measures consumer’s impressions of present conditions increased to 128.5 in September 2016 from 125.3 in August 2007, which is also the highest level in nine years. The consumer expectation gauge also jumped to 87.8 in September from 86.1 last month. In addition, share of Americans who think jobs were plentiful increased to 27.9% this month, reaching the highest level since July 2007. However, fewer consumers planned to buy home, household appliance or autos in the following six months in September than in August.
The rose in consumer confidence indicates that U.S. households are getting out of the recession’s influence, and it is a sign the U.S. economic growth will speed up over the next few months.
“Consumers are more upbeat about the short-term employment outlook, but somewhat neutral about business conditions and income prospects,” said Lynn Franco, the director of economic indicators at the Conference Board. “Overall, consumers continue to rate current conditions favorably and foresee moderate economic expansion in the months ahead.”
“Consumer sentiment is perfectly solid,” Federal Reserve Chairwoman Janet Yellen said last week. “We’re seeing a lot of strength in consumer spending, and consumer sentiment certainly seems to be solid,” she said.