Consumer confidence increased last month. On this news, the stock market has soared.
Stocks are fickle. So are people. Just by saying that consumer confidence has increased, then people will definitely feel better about some things. Some people. Those who have more difficult paying their bills regardless of the economic situation they will have not feel as confident about their situation because they are less likely to consume things.
Saturday, I as in a grocery store and I overheard more than one person complaining about the price of food. No matter what, food items are definitely what people need to purchase. Making your own meals at home, especially if you are preparing food for more than one person is more economical but it is important. Increases in food prices do not make consumers confident.
Proclaiming it in the headlines doesn’t make it so. If you are working and have a relatively secure job, this doesn’t mean that you are free from financial woes. Nor does it mean that you are an optimistic person in general. The Consumer Confidence Index is a survey of 5,000 homes, polling a few people to represent a group. If you polled an overly pessimistic group or an overly optimistic group, the numbers might be skewed.
If you have any money – 401k, investment, mutual fund, etc. - in the market now, the increase is good for you. Even though it may not change your day to day living as much.