Survey: US consumer confidence in the country’s economy jumped again in September

Spencerio Platto („Getty Images“ / AFP / „Scanpix“) nuotr.

U.S. consumers felt much better about the present and future of the American economy in September thanks to rising wages and falling gas prices, a closely watched survey showed on Tuesday.

Consumer confidence jumped nearly five points to 108, beating economists’ forecasts, according to research organization the Conference Board.

This was the second consecutive monthly gain and the highest result since April.

The U.S. Federal Reserve last week raised interest rates by 75 basis points for the third straight time in a bid to cool the world’s largest economy and reduce the fastest inflation in 40 years.

So far, progress has been slow as resilient consumers who have accumulated savings have continued to spend, supporting economic activity.

Still, the survey showed that inflation expectations fell for the third month in a row, which is good news for the central bank.

“Concerns about inflation continued to dissipate in September — driven largely by falling fuel prices — and are now at their lowest level since the start of the year,” noted Lynn Franco of the Conference Board.

Buoyed by a strong labor market, respondents felt better about their current situation and their expectations for the next six months, the survey found, but Franco warned that “recession risks remain.”

Intentions to make major purchases varied, with plans to buy cars and appliances increasing, but there was a growing reluctance to invest in housing, which Franco said reflected the impact of rising mortgage rates and a cooling housing market.

See also  German airport Münster preys on Dutchman who avoids Schiphol

“Looking ahead, an increase in economic confidence may support consumer spending in the final months of 2022, but inflation and interest rate hikes will remain strong headwinds to growth in the short term,” Franco said in a statement.

Ian Shepherdson, chief economist at research firm Pantheon Macroeconomics, warned that the good mood “may not last long as people react to the effects of the recent fall in stock prices and the recent Fed rate hikes, which are still to come.”

“However, for the time being, people’s views on both the present and the future of the economy have improved, and the main index is currently only a few points behind its pre-invasion peak,” he said.

It is prohibited to reproduce the information of the BNS news agency in public information tools and on Internet websites without the written consent of UAB “BNS”.

Choose the companies and topics you are interested in – we will inform you in a personal newsletter as soon as they are mentioned in “Verslo žinija”, “Sodra”, “Registrų centura”, etc. in sources.