Job growth helps consumer confidence raise to highest level in nine years.
Consumer confidence in America is at its highest level than it has been in the last nine years. According to a recent USA TODAY article, the consumer confidence index rose to 104.1, up from 101.8 in August, which was the strongest reading since the index stood at 105.6 in August 2007 right before the Great Recession.
The slight increase is an encouraging sign for the U.S. economic growth to increase in the coming months. Analysts expected a drop in September due to volatility in the stock market, subpar economic readings in auto sales and manufacturing, and the presidential election on consumers’ minds.
“It appears that steady job gains, low volatility in equity markets and subdued gasoline price pressures are helping consumers’ outlooks,” analysts at Contingent Macro Research said in a note to clients.
Consumers’ positive outlook about economic conditions will help lift consumer spending and the economy overall. Forecasters are predicting that GDP growth will accelerate to 3% in the current quarter.
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