Earlier this morning, we learned that consumer confidence had jumped to 70.3 from 61.3 a month ago.
However, the jump in confidence was skewed because of those earning more money. In fact, confidence is actually down for those earning between $35K and $50K.
From Bespoke Investment Group:
The interesting aspect of this month’s report was the disparity in confidence levels between consumers with incomes above $50K and those with incomes of between $35K and $50K. During the month of September, confidence among Americans with incomes greater than $50K rose from 76.4 to 87.4, representing the highest level since January 2001. For Consumers with incomes between $35K and $50K, however, confidence actually declined from 61.8 down to 56.1.
The chart below shows the spread between confidence among Americans based on income ($50K vs $35K-$50K). As shown, this month’s spread of 30.1 represents the widest spread going back to at least 1990.
Photo: Bespoke Investment Group
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