US consumer confidence jumps to 2007 Pre-recession rate

The US consumer confidence registered a higher growth rate than expected in September 2016, suggesting a gradual strengthening of the sentiment of households, a good sign for consumption and for economic growth.

According to the Conference Board of the United States, the confidence hit 104.1 points in September from a revised 101.8 in August turning out better the expectations of analysts who had forecast a decline to 99 points. It was the strongest reading since the index stood at 105.6 in August 2007, four months before the beginning of the Great Recession of 2007-2009.

The survey on consumer confidence is based on a representative sample of 5,000 US households and is realized, for the Conference Board, by NFO WorldGoup.

”Consumers’ assessment of present-day conditions improved, primarily the result of a more positive view of the labor market,” said Lynn Franco, the Conference Board’s director of economic indicators. “Looking ahead, consumers are more upbeat about the short-term employment outlook, but somewhat neutral about business conditions and income prospects.”