By Selina Stoller, Summit Consumer Receivables Acquisitions, LLC
Americans are growing more confident about their purchasing power.
According to Bloomberg’s Consumer Comfort Index, the economy’s performance and spending sentiment are at an almost 17-year high.
This surge in consumer confidence comes after record high stock market numbers, the passing of tax-cut legislation, and ample job opportunities, according to Bloomberg.
Around 35 percent of respondents in the Bloomberg monthly expectations survey for January suggested the economy was getting better. Overall, more confident consumers are indicative that household spending will remain robust and help fuel the economy.
- Comfort index of personal finances eased last week to 59.5 from 60.2
- 70 percent of Republicans see the economy as improving and are more upbeat than Democrats (21 percent) and independent voters (33 percent)
- Americans with incomes below $50,000 matched highest in available data back to 2010
- Confidence among consumers in the Northeast, those who are unemployed and married Americans reached near 17-year highs also
Jim Baird, chief investment officer at Plante Moran Financial Advisors in Kalamazoo, Michigan told Reuters that this optimism could increase overall growth.
“An optimistic consumer emboldened by a solid economy and an increasingly competitive labor market is likely to continue to spend, reinforcing a virtuous cycle that should be supportive of further growth,” Baird said.
The spike in confidence is believed to have been driven by expectations of big tax cuts after President Donald Trump and Republicans in the U.S. Congress vowed and then passed historic tax reform this year.
- 22 Jan, 2018
- Josh Smith