All eyes this week have been on Libya and the price of oil. But that should not distract our attention from a strong report that appeared a few days ago.
The Conference Board announced that its index of consumer confidence had popped up to 70.4 in February:
http://www.conference-board.org/data/consumerconfidence.cfm
If you examine the chart you will see that consumer confidence plunged to the high 20s in the depths of the recession and has struggled to recover more normal levels. The reading of 70.4 is a solid advance and tells us that households are markedly more upbeat than they have been.
Consumer Confidence
(Click on chart to enlarge.)
Recessions shaded
As we move into the month of March the following question becomes paramount: Will households’ confidence continue its upward trajectory and ignite spending despite any surge in fuel prices?
Stay tuned.
(The chart was taken from http://www.beyourowneconomist.com. [Click on Seminars and then Charts.] Go there for additional charts on the economy and a list of economic indicators.)
© 2011 Michael B. Lehmann
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