Last Friday, after the strong jobs report, we wrote a post titled And Now It All Makes Sense arguing that the big improvement in unemployment was consistent with strong car sales and rising consumer confidence.
Well that argument makes more sense than ever.
University of Michigan Consumer Confidence just hit its highest level in 5 years.
Here’s the chart via Reuters’ Scotty Barber:
Photo: Scotty Barber, Reuters
There’s just no question now that in September there’s been a major boost in the economy, at least as seen by households.
Which gets us to the second interesting point, which is that the view of the business sector is markedly different. On October 9, we wrote about the split emerging between businesses and households. Big business leaders claim to be super-pessimistic, and the NFIB optimism index has really stunk.
So today’s confidence number just confirms everything. Household optimism is growing. The split between businesses and households is getting wider.