Last Update: 29-Sep-15 10:15 ET
- The Conference Board’s Consumer Confidence Index increased to 103.0 in September from a downwardly revised 101.3 (from 101.5) in August. The Briefing.com Consensus expected the index to fall to 96.0.
- That was the best reading since the index reached 103.8 in February.
- In a clearly unexpected move, consumers shrugged off the negative effects of the downward-trending stock market and instead focused on lower gasoline prices and a generally improving labor market.
- The respondents in the University of Michigan Consumer Sentiment Index had the exact opposite view as that index fell to its lowest point since October 2014 in September.
- The Present Situation Index increased to 121.1 in September from 115.8 in August. That was the strongest reading since September 2007.
- The Expectations Index declined to 91.0 from 91.6.
- Stronger confidence levels do not necessarily mean stronger consumption trends. Consumption relies on income growth. As long as income growth accelerates, consumption growth should follow.
- Consumer confidence has little influence on consumption. As long as payroll levels continue to expand, the resulting income growth should keep consumption gains steady regardless of the monthly ebbs and flows in confidence levels.
|Employment ('plentiful' less 'hard to get')
|1 yr inflation expectations