April's 57.9 Consumer Confidence Reading is Highest Level Since Sept. '08
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The markets saw a bit of economic data Tuesday that supplemented the recent bullish corporate earnings releases: a spike in April consumer confidence. Today's consumer reading marked the highest level of confidence felt since the financial system first went into cardiac arrest in 2008.
The Conference Board, a private research group, reported that its consumer confidence index increased to 57.9 this month, up from a revised 52.3 reading for March. Economists were anticipating a reading of 53.5.
The April reading was highest seen since a 61.4 reading was posted in September 2008 -- the same month that Lehman Brothers collapsed -- sending consumer confidence tumbling the next month.
The consumer confidence survey is closely monitored by economists and market players as shopper spending activity, which is tracked by the index, accounts for roughly 70 percent of U.S. economic activity.
The data point is still far from where it was before the recession; a reading of 90 represents stability and any reading above 100 represents solid growth. Still, the April number showed that consumer fears over the jobs market and the overall economy are abating.
"Looking ahead, continued job growth will be key in sustaining positive momentum," said Lynn Franco, director for The Conference Board Consumer Research Center.
The component that measures the outlook of consumers for the next six months jumped to 77.4 this month from 70.4 in March, while the measurement of how shoppers feel about the overall economy increased to 28.6 from 25.2.
The survey from the Conference Board also showed a more upbeat outlook for the jobs market, as the percentage of consumers that are anticipating more available position in upcoming months rose to 18 percent in April from 14.1 percent last month.
The government is set to release the initial gross domestic product report on Friday, with economists expecting growth of 3.3 percent.
The Conference Board, a private research group, reported that its consumer confidence index increased to 57.9 this month, up from a revised 52.3 reading for March. Economists were anticipating a reading of 53.5.
The April reading was highest seen since a 61.4 reading was posted in September 2008 -- the same month that Lehman Brothers collapsed -- sending consumer confidence tumbling the next month.
The consumer confidence survey is closely monitored by economists and market players as shopper spending activity, which is tracked by the index, accounts for roughly 70 percent of U.S. economic activity.
The data point is still far from where it was before the recession; a reading of 90 represents stability and any reading above 100 represents solid growth. Still, the April number showed that consumer fears over the jobs market and the overall economy are abating.
"Looking ahead, continued job growth will be key in sustaining positive momentum," said Lynn Franco, director for The Conference Board Consumer Research Center.
The component that measures the outlook of consumers for the next six months jumped to 77.4 this month from 70.4 in March, while the measurement of how shoppers feel about the overall economy increased to 28.6 from 25.2.
The survey from the Conference Board also showed a more upbeat outlook for the jobs market, as the percentage of consumers that are anticipating more available position in upcoming months rose to 18 percent in April from 14.1 percent last month.
The government is set to release the initial gross domestic product report on Friday, with economists expecting growth of 3.3 percent.
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