Bloomberg Consumer Comfort Index Shows Rebound In US Consumer Confidence
The Bloomberg Consumer Comfort Index has been on the rise over the past several weeks, Bloomberg News reported, and climbed to 44.8 for the week ending Oct. 4. Over three weeks, the index rose 4.6 points, the largest gain for a three-week period since May 2009. The buying-climate index, a measure of if consumers think it’s an ideal time to buy goods and services, rose to 39.6, its highest level since May, while the index of consumers’ views of their finances rose to its highest level since April, 59.3. Finally, confidence about the US economy as a whole rose to 35.4, the highest level since the beginning of May. Bloomberg News said the rebound in consumer confidence “from a mid-year setback indicates households may be looking past unsteady global markets,” and that rebounds in consumer spending indicate consumers “are leveraging increased purchasing power from persistently low energy prices and a firming job market.” Examining specific regions, consumer comfort rose in the Northeast, South, and West, and was the highest level in several months among both households earning under $50,000 as well as those earning more than $100,000. Langer Research Associates president Gary Langer said the data “are consistent with strong consumer spending, including solid growth in retail and car sales. That spending pushes against headwinds including weak manufacturing data, a disappointing jobs report and continued global economic uncertainty.”
What This Means For Small Businesses
Consumer confidence is vital for the success of every small business, because optimistic consumers will spend more money, keeping those small businesses operational, and driving business growth. When US consumers signal their concerns over the economic outlook, small businesses may suffer lost revenues. Thus, the latest results from the Consumer Comfort Index should be positive news for small businesses.
Additional Reading
NFIB previously reported results from the Bloomberg Consumer Confidence Index.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
