Consumer confidence rose in September to the highest level since the
coronavirus pandemic began after the number of cases declined and the
economic forged ahead, a closely followed survey showed.
The index of consumer confidence rose to 101.8 this month from 86.3 in August, the Conference Board said Tuesday. It was the biggest one-month increase in 17 years.
Economists polled by MarketWatch had forecast a smaller increase in
the index to 89.6. The level of confidence in August was also revised
slightly higher after initially showing the lowest reading since the
pandemic began more than six months ago.
“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,” said Lynn Franco, senior director of economic indicators
at the board.
An index that gauges how consumers feel about the economy right now jumped to 98.5 in September from 85.8 in the prior month.
Another gauge that assesses how Americans view the next six
months—the so-called future expectations index—surged to 104 from 86.6.
The rebound in confidence almost certainly reflects a decline in coronavirus cases after a midsummer spike.
Perhaps
more surprising, a reduction in federal benefits for the unemployed did
little to dampen the optimism. A $600 federal unemployment stipend
expired at the end of July. President Trump authorized temporary $300
payments, but the money is already running out and Congress is
deadlocked on what to do next.
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