Consumer confidence explodes to a 13-year high


Michigan football fansREUTERS/Mike
Stone

US consumers haven’t been this optimistic about the economy since
the start of 2004, according to a survey conducted by the
University of Michigan. 

The consumer-sentiment index registered a preliminary October
reading of 101.1, a monthly report showed Friday.

The data suggest that consumer spending will likely continue
to support the economy through at least mid-2018, at which time
this economic expansion would become the second-longest since the
19th century. US
economic growth
in the second quarter rose to a two-year high
on stronger consumer and business spending, a late-September
report showed. 

The surge in optimism “reflects an unmistakable sense
among consumers that economic prospects are now about as good as
could be expected,” said Richard Curtin, the chief economist of
the survey.

“This ‘as good as it gets’ outlook is supported by a
moderation in the expected pace of growth in both personal
finances and the overall economy, accompanied by a growing sense
that, even with this moderation, it would still mean the
continuation of good economic times.”
 umich consumer sentimentUniversity of Michigan via
Bloomberg

But consumers continue to expect slow wage growth, and limits on
how quickly their living standards will improve, according to the
survey.

Consumer sentiment spiked after
President Donald Trump’s election
largely along partisan
lines: Republicans turned much more optimistic while Democrats
turned more bearish on the economy’s direction.

Source