Consumer Sentiment in U.S. Increases to a Seven-Year High

[Zippyjuan]

http://www.bloomberg.com/news/2014-1...year-high.html

Consumer confidence in the U.S. unexpectedly rose in October to the highest level in seven years, showing a brightening in Americans’ moods as gas prices drop and the labor market gains traction.

The Thomson Reuters/University of Michigan preliminary sentiment index for this month increased to 86.4, the strongest since July 2007, from a final reading of 84.6 in September. The median projection in a Bloomberg survey of 67 economists called for 84.

Job gains on pace for their strongest year since 1999 and cheaper gas prices are keeping households upbeat about economic expansion amid the weakening in Europe and emerging nations. Faster wage increases and more broad-based improvement in the labor market would help further spur the consumer spending that makes up about 70 percent of the economy.

“An improving job market and lower energy costs are going to offset a lot of what’s happening,” said Joseph LaVorgna, chief U.S. economist of Deutsche Bank Securities Inc. in New York, who projected the index would rise to 86.

Estimates in the Bloomberg survey ranged from 81 to 87. The index averaged 89 in the five years before December 2007, when the last recession began, and 64.2 in the 18-month contraction that followed.

The gain in confidence reflected a jump in Americans’ expectations about the economy six months from now as that gauge rose to 78.4 in October, a two-year high, from 75.4 last month. The gauge of current conditions, which measures Americans’ views of their personal finances, was unchanged at 98.9.

Today’s figures match other recent measures of sentiment. The weekly Bloomberg Consumer Comfort Index of current conditions has improved after reaching a four-month low in late September, and the monthly expectations index jumped to a two-year high in October, a report yesterday showed.

With payrolls on track for their best year of growth since 1999 and firings the lowest in 14 years, labor market gains are helping to underpin Americans’ spirits.

Fewer Claims

Claims for jobless benefits decreased by 23,000 to 264,000 in the week ended Oct. 11, the fewest since April 2000, the Labor Department reported yesterday.

More at link.

[TheCount]

Why won't you just let us enjoy our imminent doom in peace?

[FindLiberty]

Consumer sediment (found in urine) probably also contains struvite crystals.

POSSIBLE SOLUTION: Stop consuming people, and drink more fluorinated water.

[Ronin Truth]

What will the "corrected" consumer sentiment numbers be AFTER the November midterm elections? I SWAG significantly lower.

[oyarde]

Well , I guess we may know more when the Christmas spending numbers turn up . Until then , I doubt it .

[puppetmaster]

Garbage numbers from garbage people. Just ask your friends and neighbors for thier opinion.

[Zippyjuan]

If numbers from the government are all lies, remember that the ones which said we were in recession also came from the government. Maybe there wasn't really a recession. But I guess bad numbers are real and good numbers are made up.

[acptulsa]

'Your grave is only three feet deep' manages to be a lie without denying the existence of the hole. Why would government be unable to skate the same fine line? After all, government propagandists have about a thousand years' experience doing just that...

I know you understand the concept of plausible deniability, Z2.0--you rely on it often enough.