Consumer Confidence On The Upswing

Consumer confidence is on the upswing, pointing perhaps to an upturn for consumer spending. The September index rose more than 3 points to 104.1 to beat the high-end forecast by nearly 2 points. This is also a new cycle high, eclipsing 103.8 in January 2015. And the assessment of September's labor market is upbeat with more consumers saying jobs are plentiful and with fewer, in a closely watched reading, saying they're hard to get, the latter down 1.2 percentage points to 21.6 percent. Another plus in the report is badly needed improvement in the 12-month inflation outlook, up 2 to tenths to 5.0 percent for the best reading of the year. Negatives include an easing in income prospects and weakness in long-term buying plans but otherwise this is a surprisingly strong report, one that will likely boost expectations for next week's employment report.

Recent History Of This Indicator:
Readings on consumer confidence have held steady at solid levels this year including the Conference Board's consumer confidence index which jumped nearly 4-1/2 points to 101.1 in August. Forecasters see the index giving back some of August's gain with the September consensus at 98.8. Among positives in the report has been a widening in those who see their incomes improving which boils down to confidence in the jobs market. Buying plans for homes have also been on the climb.