Just this morning we were talking about how the rising stock market was getting people into buying cars and cruises again.
And now here’s more confirmation that the consumer’s mindset is coming back — even if their use of credit is not, yet.
The preliminary September reading of the Michigan Consumer Sentiment index came in well above consensus (67.5) at 70.2. The reading in August was 65.7
The stronger-than-expected reading shouldn’t be too much of a surprise to the market. The index is highly correlated with positive/negative news reports from the media and all the talk of the end of the recession over the last few weeks gave the consumer a feeling of relief that the economy is doing better.
The market is basically flat on the news.