Consumer Confidence In September Nearly Matches Post-Recession High

Despite slow growth in wages and hours, American consumers are finally beginning to believe their income prospects are improving, according the latest gauge of consumer confidence from Thomson Reuters/University of Michigan and The Conference Board. The Consumer Sentiment Index from UM hit 84.6 in September, up from 82.5 in August, its second highest reading in the past seven years.

More households expected income gains in the year ahead in September than at any time since September 2008, according to the UM survey. The expected median gain, 1.1%, while modest, was also the highest since late 2008. As a result, the UM Expectations Index jumped sharply, to 75.4 from 71.3 in August.

“Surprisingly, an improved economy has not sparked renewed optimism, at least until recently,” said UM Surveys of Consumers Chief Economist Richard Curtin. The renewal of income growth is particularly important for sparking increased consumer spending in the year ahead.”