Consumer confidence surges to post-recession high

Coogee Beach. Zak Kaczmarek/Getty Images

Consumer confidence just surged to its highest level since the recession.

The latest reading on consumer confidence from the Conference Board came in at 104.1 for September, up from the prior month’s 101.8.

The index touched 105.6 in August 2007, according to Joe LaVorgna, chief US economist at Deutsche Bank.

Meanwhile, economists had forecast that the index dropped to 99.0 this month, according to the Bloomberg consensus.

“Consumers’ assessment of present-day conditions improved, primarily the result of a more positive view of the labour market,” said Lynn Franco, Director of Economic Indicators at The Conference Board.

The report noted that consumers are feeling better about jobs: the proportion of those expecting more jobs in the upcoming months rose to 15.1% from 14.4%, and the proportion of those expecting less jobs dropped to 17.0% from 17.5%. Moreover, those expecting a drop in incomes to decreased to 10.3% from 11.0%.

However, those expecting incomes to increase dropped to 17.1% from 18.5%.

“Consumers are not buying into ‘doom and gloom’ right now. It is amazing that the election is as close as it is … ” wrote Renaissance Macro’s Neil Dutta in a note after the report.

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