U.S. consumer sentiment surges to 13-year high

“U.S. consumer sentiment unexpectedly surged to a 13-year high as Americans’ perceptions of the economy and their own finances rebounded following several major hurricanes, a University of Michigan survey showed Friday,” Agnel Philip reports for Bloomberg. “The jump in sentiment, which was greater than any analyst had projected, may reflect several trends: falling gasoline prices following a hurricane-related spike; repeated record highs for the stock market; a 16-year low in unemployment; and post-storm recovery efforts driving a rebound in economic growth.”

“The advance in the main gauge spanned age and income subgroups as well as partisan views, according to the report,” Philip reports. “Almost six out of every 10 consumers thought the economy had recently improved in early October, the university said.”

While the early October surge indicates greater optimism about the future course of the economy, it also reflects an unmistakable sense among consumers that economic prospects are now about as good as could be expected. Indeed, nothing in the latest survey indicates that consumers anticipate an economic downturn anytime soon — which contrarians may consider a clear warning sign of trouble ahead. — Richard Curtin, director of the University of Michigan consumer survey

Read more in the full article here.

MacDailyNews Take: This obviously bodes very well for discretionary-spending-dependent Apple and the slew of new iPhones, Macs, iPads, and entirely new consumer products (HomePod) the company has recently debuted or is about to begin shipping!

University of Michigan Consumer Confidence, October 2017
Source: University of Michigan

 
More info via the University of Michigan here.

17 Comments

    1. Specifically, while 60% of respondents (an increase) thought the economy as a whole was improving, only 40% (a decrease) expected their own financial situation to improve. That pattern (“I see the rich getting richer, but my sort getting poorer”) may limit the impact of the economic optimism on consumer spending and Presidential job-approval numbers.

      1. Up to your old tricks again. Denigrating good news because you can’t stand a rookie Republican in the White House becoming more SUCCESSFUL and presidential (Iran speech) DAY BY DAY …

      2. GeoB,
        I’m not denigrating anybody. I’m quoting the article (which you obviously did not read if you think it’s “good news”) and agreeing with howaboutanewton that it really isn’t the ringing endorsement of Trump policy that the President’s supporters seem to think.

        The fact that 60% think the economy as a whole is better seems less significant than that 50% have not seen their own financial situation improve and only 40% expect it to improve in the future.

  1. There was nothing unexpected. The rise started the day after Trump won the election and then went into full effect the day after he was inaugurated. All coincidence.

  2. The recovery has been progressing steadily since 2009. You and I may disagree on whether the methods were fair (seldom are they). But there were a million ways Obama could have screwed it up, and he DID NOT. Steady slow growth is infinitely better situation than the old boom and bust cycles that Trump and Wall St want.

    1. Yes. Sentiment will crash when at the end of 2017 Trump will still have not signed any legislation, just a bunch of executive orders telling different departments to study ways to screw the lower classes, except coal miners. Cause you know coal is the future, right?

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