For the week ended August 5th U.S. consumer comfort sentiment index reaches 17-year high

For the week ended August 5, the U.S. consumer comfort sentiment index rose to a 17-year high. The rise was sparked by more optimistic views of the U.S. economy and personal finance.

Highlights of the Index

The data comes from the Bloomberg Consumer Comfort Index.

The weekly index rose to 59.3. This is the highest it has been since February back in 2001 when it was 58.6. The view of the current economy was at 61.9 from the last measure of 60.3. This is the highest it has been in 17 years. The index for personal finances was also at a record high at 66 from the last measure of 65.6. The last time it was this high was 2001. The index for buying was also up marginally at 50.1 from 49.9.

Key factors

The confidence is increasing during a tight labor market and relatively robust economic growth. Consumers are also enjoying the results of tax cuts and also lower gasoline prices. The increased confidence mirrors the stock market which has rallied back to near record levels. However, on the negative side there has been both weak wage growth and also a lower labor force participation than in late 2000 the last time the unemployment rate was this low.

Other details

The comfort index among those with a high school degree was at a 17-year high.

Comfort sentiments among those who were political independents was at the highest level since 2001. It exceeded the level of Democrats by a whopping ten points.

Confidence among single Americans also hit a 17-year high but still remains below those who are married.

Confidence level in mean exceeds that of women

The level of confidence among American men climbed to an almost 18-year high and exceeded that of women by the most in records dating back to 1990. This helped keep the index elevated.

The Consumer Confidence Index

The Bloomberg index should not be confused the Consumer Confidence Index which was also up but only slightly in July: "The Consumer Confidence Index is a measurement of Americans’ attitudes about current and future economic conditions. It tells you how optimistic people are about the economy and their ability to find jobs: "The Consumer Confidence Board reported the Index was 127.4 in July 2018. That's down from 130.0 in February. The down-tick was because people were a little concerned about the future. But it's still better than the pre-recession high of 111.9 reached in July 2007. " The all-time low was 25.3 in February of 2,009.

Previously published in Digital Journal