Bloomberg reports that “more Americans this month said the economy was improving than at any time in eight years as the job market picked up.
“The share of households viewing the economy as heading in the right direction rose to 34 percent in March, the most since January 2004, pushing the Bloomberg monthly expectations gauge to a one-year high of 1. The weekly Bloomberg Comfort Index was minus 34.9 in the period ended March 18, down from a four-year high of minus 33.7 over the previous seven days ... The best six months of job growth since 2006 is probably behind the increase in optimism, raising the odds that the spending that accounts for about 70 percent of the economy will strengthen. Gains in incomes and employment may be among reasons households have so far been able to weather the jump in gasoline prices.”
However, experts say that a continuing rise in fuel prices could erode consumer confidence and spending.
“The share of households viewing the economy as heading in the right direction rose to 34 percent in March, the most since January 2004, pushing the Bloomberg monthly expectations gauge to a one-year high of 1. The weekly Bloomberg Comfort Index was minus 34.9 in the period ended March 18, down from a four-year high of minus 33.7 over the previous seven days ... The best six months of job growth since 2006 is probably behind the increase in optimism, raising the odds that the spending that accounts for about 70 percent of the economy will strengthen. Gains in incomes and employment may be among reasons households have so far been able to weather the jump in gasoline prices.”
However, experts say that a continuing rise in fuel prices could erode consumer confidence and spending.
- KC's View:
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No kidding. I remain convinced that the whole recovery is a house of cards.
