Consumer Comfort Highest in Almost 4 Years
By Bob Willis - Feb 23, 2012 9:45 AM ET
Consumer confidence in the U.S. increased last week to the highest level since April 2008 as more Americans had a favorable view of their finances.
The Bloomberg Consumer Comfort (COMFCOMF) Index rose to minus 38.4 in the period ended Feb. 19, its fifth consecutive gain, from minus 39.8 the previous week. It marked the second straight week above minus 40, which is the level associated with recessions and their aftermath. Men, homeowners and households with annual incomes of more than $50,000 were the most optimistic in more than a year.
A majority rated their personal finances as positive for the first time since July, indicating a rising stock market and job growth may encourage consumers to keep spending. At the same time, higher gasoline costs threaten to unravel the recent gains in sentiment, as occurred a year ago.
“An improving labor market and rising equity prices have bolstered sentiment of survey participants, especially those in the upper-middle and wealthy classes,” said Joe Brusuelas, a senior economist at Bloomberg LP in New York. Still, the “improvement will be put to the test in coming weeks due to the spike in gasoline prices.”
The price of a gallon of regular unleaded gasoline climbed to $3.57 as of Feb. 19 from a 10-month low of $3.21 in December, according to AAA, the nation’s largest automobile association. A year ago, gasoline costs rose through the middle of May, climbing to $3.99 a gallon, from $3.10 at the end of January. At the same time, confidence waned.
more @ Bloomberg.com
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