Feb. Consumer Confidence Hit 3-Month High
Consumer confidence in the U.S. rose in February to a three-month high, which may help to preserve recent gains in household spending.
Bloomberg reported that the Thomson Reuters/University of Michigan preliminary index of consumer sentiment climbed to 76.3 this month from 73.8 in January. The gauge was projected to rise to 74.8, according to the median forecast in a Bloomberg survey.
Increased property values, a strengthening job market and stocks at five-year highs are providing a boost to Americans’ balance sheets. A pickup in wealth would help make up for recent gains in gasoline prices and the hit to take-home pay from a two percentage-point increase in the payroll tax.
“We saw a meaningful improvement in overall financial market conditions and home prices, and those are the kind of drivers now for consumer confidence,” said Millan Mulraine, director of U.S. rates research at TD Securities USA LLC in New York, who projected a sentiment index of 76. “As attitudes continue to improve, we are likely to see that possibly be reflected in improved spending.”
Other data today showed manufacturing is on the mend. The Federal Reserve Bank of New York said its general economic index climbed to 10 in February, the highest since May, from minus 7.8 in the prior month. Readings greater than zero signal expansion in New York, northern New Jersey and southern Connecticut.