Consumer confidence is on a roller coaster. One month it is up another it is down. Since the information is based on a small survey of 5000 people this only gives a small amount of people who are confident that the economy is improving.
Consumer confidence “appears to be back on the mend,” said Lynn Franco, head of the consumer research center at the Conference Board, which is a private research group.
If the majority of the people who were surveyed were in an economically depressed area, I think the responses and numbers might be higher. Though the increased consumer confidence is a positive economic boost since 2/3 of our economy is based on consumer spending, the more people spend, the better the economy will fare. Also announced today people have been paying their credit cards off, but not their mortgages. More mortgages have been entering the 90-day delinquency stage but credit card debt is decreasing.
This is also how the economy became troubled initially, too much consumer spending that people couldn’t afford.
Confidence also depends on employment status as well. For those who are employed and able to pay all of their bills there is more likelihood that they will see the economy improving. The un- and underemployed might have a different take on the economy if they cannot afford to buy what they really need (or even affordable nonessentials).
This month the consumer confidence is up and it may keep rising. Consumer confidence is personal. Those who can afford what they need and some of their wants are those who are most confident.
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