WASHINGTON (9/30/15)--Consumer confidence improved in September, according to the Conference Board’s consumer confidence index, which rose to 103 from 101.3 during the month (Economy.com Sept. 29).
The performance--marking the second straight month of growth--pushed the index to its highest point since January.
“Consumer confidence is up 1.7 points from last month and 14 points from a year earlier,” said Jeremy Cohn, Moody’s analyst (Economy.com). “Consumers are finally starting to feel the labor market recovery. Growing optimism about the availability of jobs and a sense of security in the labor force are going to give consumers the confidence to spend their money.”
The present conditions subindex climbed to 121.1 from 115.8, fueled by an improving labor market and still-low gasoline prices, according to Moody’s.
But the economic expectations component fell to 91 from 91.6 in September, likely due to international economic turmoil and a turbulent stock market.
“This month and the revised differential from August show that people are more optimistic than pessimistic about the job market for the first time in seven years,” Cohn said. “This confidence in the labor market and the falling unemployment rate are driving consumer confidence.”