US Consumer Confidence: solid rise boosted by labor market - Wells Fargo

Analysts from Wells Fargo, point out that Consumer Confidence (Conference Board), rose solidly in September, making a new high since 2007 as optimism continues to build over the hiring outlook. They warned that business conditions and income prospects remain stuck.

Key Quotes:

“Increasing for the second consecutive month, consumer confidence unexpectedly rose 2.3 points to a new cycle high of 104.1 in September.”

“Consistent with the Fed’s assessment of “strengthening,” labor market conditions have been supportive to the recent increase we have seen in confidence and consumer spending growth. Not all was rosy in this report, as reflected by consumers’ assessment of future business conditions and income prospects. Both fell in September and stand below year-ago levels.”

“Fundamentals for future consumer spending, including confidence, remain favorable. As we see it, consumer spending is still poised to remain the primary contributor to U.S. GDP growth over the medium-term.”