According to the latest weekly report on the consumer mood from
Bloomberg, Americans' expectations for the economy in October climbed to
the highest level in almost two years as a pickup in hiring, falling
gasoline prices, and low borrowing costs heartened households.
A
measure tracking the economic outlook climbed to 51 this month, the
strongest since November 2012, from 41.5 in September, data from the
Bloomberg Consumer Comfort Index showed today. The weekly overall
sentiment index was little changed at 36.2 for the period ended October.
12 from 36.8.
Bloomberg comment that the lowest jobless rate
since 2008 and the cheapest gasoline costs in a year probably combined
to lift households' spirits about the future. The upbeat mood may be
difficult to sustain as stocks slump and concern grows that the Ebola
virus poses a wider health risk.
The "likeliest suspects" for the
jump in expectations were the increase in hiring and the drop in
gasoline prices, Gary Langer, president of Langer Research Associates
LLC in New York, which compiles the comfort index for Bloomberg, said in
a statement. "Still the stock market last week sustained its largest
one-week decline in more than two years."
The 9.5-point jump in
the expectations index was the biggest since May 2009, the month before
the last recession ended. The share this month of those who said the
economy was improving rose to 32 from 20, while the share who said the
economy was getting worse fell to 30 from 38 in September.
The
weekly measure of views on the current state of the economy was little
changed at 25.7 compared with 25.6 the prior period. The buying climate
index fell to 33 from 33.8 as more people said now was a poor time to
make purchases.
The Bloomberg gauge of personal finances index dropped to 50, its lowest since late May, from 51 in the previous period.
Cheaper
fuel is probably giving consumers hope that their finances will
improve. A gallon of regular fuel at the pump cost $3.18 on average as
of October 14, down from a high of $3.70 in April, based on data from
AAA, the largest U.S. motoring group.
Today's report showed
confidence among those with household incomes of more than $100,000 rose
to its highest since April and second-highest since 2007. It's gained 8
points in the past five weeks.
Among regions, the Northeast led
gains last week, with the index jumping 3.9 points to the highest since
July 6, according to today's figures.
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