Bloomberg Consumer Comfort Shows Optimism

The weekly Bloomberg measure of consumer confidence is more positive than recent monthly measures by other surveys. Consumer sentiment in the U.S. increased last week by the most since mid-November as households grew more optimistic about the economy and buying climate.

The Bloomberg Consumer Comfort Index climbed to 36.8 in the period ended October 5 from a four-month low of 34.8. A gauge of attitudes about the world's largest economy registered the biggest increase since 2007.

According to Bloomberg, a pickup in hiring, more job openings and lower gasoline prices are combining to brighten Americans' spirits even as the stock market languishes. While today's figures showed confidence improved among the college educated, homeowners and almost all income groups, the weekly gain left sentiment close to its third-quarter average.

The Bloomberg gauge of sentiment about the state of the economy, climbed to 25.6 last week, the highest since the end of August, from 22.4.

The buying climate index, which asks whether this is a good time to make purchases, increased to 33.8, the highest since mid-July, from 31.9.

Bloomberg stated that the gain probably reflected cheaper prices at the gas pump, which helps free up money to spend elsewhere. The average nationwide cost of a gallon dropped to an eight-month low of $3.27 on Oct. 7, according to data from AAA, the nation's largest motoring group.

The Bloomberg measure of personal finances rose to 51 from 50.2, extending to 19 the number of weeks it's held above 50.

Today's report showed confidence among homeowners rose to its highest level since December 2007. Sentiment also improved for renters, though the gap between the two groups was the second-largest in four years.

Confidence among those earning more than $100,000 a year also advanced this week to 61.6, the highest level since the middle of April. Among those earning less than $50,000 confidence increased to 25.7, narrowing the gap between the two income groups after it reached its widest point since November. Sentiment rose in six of seven wage brackets.