Consumer confidence surges, factories, housing up
Americans’ confidence in the economy surged last month to the highest level in nearly five years, as many were encouraged by an improving job market.
The Conference Board said Thursday that its consumer confidence index increased in October to 72.2. That’s up from 70.3 in September and the highest reading since February 2008, two months into the Great Recession. Investors cheered the news.
Consumers were more confident after seeing better job growth, the report noted. Hiring in July and August was stronger than first thought, and employers added a modest 114,000 jobs in September, the government reported last month.
The survey is watched closely because consumer spending drives nearly 70% of economic activity. The reading is still below 90, a level that indicates a healthy economy. It last reached that level in December 2007. But the index is far above the all-time low of 25.3 touched in February 2009.