September Brings New Hope with a Rebound in Consumer Confidence – The Sharpest Rise in 17 Years
An uprise in the consumer confidence was noted by the latest monthly data by The Conference Board on 29th September 2020. Consumer confidence bounced back with a great overall positive impact as the optimism of U.S citizens towards the economy and prospects for employment grew.
According to the latest monthly data by The Conference Board’s, the sharpest rise in the index of consumer confidence was noted at a reading of 101.8 with a rise of 15.5 points from the last month. This has been the biggest one-month bounce on this list since 2003.
“A more favorable view of current business and labor market conditions, coupled with renewed optimism about the short-term outlook, helped spur this month’s rebound in confidence. Consumers also expressed greater optimism about their short-term financial prospects, which may help keep spending from slowing further in the months ahead,” said Lynn Franco, senior director of Economic Indicators at The Conference Board.
Consumer confidence represents 70% of U.S economic activity, and it is consistently being monitored for changes in monthly and yearly trends. As the holiday season grows nearer the nation is moving towards a crucial economic period.
Even though consumer confidence is not as stable as it was pre-pandemic, with a reading of 133.6 back in February 2020, economists have noted that the economy is still performing better than anticipated.
Earlier this year, Coronavirus impacted the whole economy drastically, leading to a plunge in Consumer Confidence. Hundreds of businesses went out of work following the lockdown, leaving tens of millions of Americans unemployed.
However, the rebound in confidence in September indicates that the consumers are quite optimistic and hopeful about the job market and the state of the economy than what analysts had expected.
“The rebound in confidence suggests that spending may not slow further. If confidence holds up next month, it could be a good omen heading into the holiday season,” added Franco.
If this trend persists then there’s a good chance that the U.S economy will stabilize again soon.