U.S. consumers felt more confident about the economy last month than at any time since the September failure of Lehman Brothers that pushed global banking to the brink of collapse, a survey showed on Friday.
- The Reuters/University of Michigan Surveys of Consumers said its final index of confidence climbed to 65.1 in April from 57.3 in March. That was the highest since September 2008 and the biggest one-month increase since October 2006.
- The April reading also marked the first yearly increase since July 2007. Economists polled by Reuters had expected a lower final reading of 61.9 for April.
- Most of the gain can be tied to consumers' favorable assessment of U.S. President Barack Obama's stimulus spending, Curtin said. The survey found that 65 percent of consumers thought the stimulus would improve the national economy.
A) Many people feel they can get great deals on items like houses and cars, etc. Value is very important in consumer purchases in a market like this.
B) You can't get great rates on your savings. People are more likely to start investing money again (even if it is very conservatively) to find some capital gains.
Again; short-term indicator, but a positive.
A common phrase I like to cite in this type of situation: PERCEPTION IS REALITY.