Newsroom

January 27, 2015

Consumer confidence at highest level since 2007

Consumer confidence in the economic recovery is at its highest level since 2007 – jumping to an index of 102.9 in January from a revised 93.1 in December – according to private research group The Conference Board.

"Tuesday's report on consumer confidence revealed a notable increase in both the present and future outlook of consumers," said NAFCU Chief Economist and Director of Research Curt Long. "In particular, households are more optimistic about the labor market and more confident that they will see wage increases this year. Wage growth has been a missing component from the recovery thus far and would potentially improve consumer spending and loan demand on the one hand, while also making the Federal Reserve more comfortable with an increase in short-term interest rates."

Lynn Franco, director of economic indicators at The Conference Board, said in a press statement Tuesday that "a more positive assessment of current business and labor market conditions contributed to the improvement in consumers' view of the present situation." She continued, "Consumers also expressed a considerably higher degree of optimism regarding the short-term outlook for the economy and labor market, as well as their earnings."

On the labor market front, The Conference Board survey revealed that consumers' outlook was also more positive. "Those anticipating more jobs in the months ahead increased from 14.6 percent to 16.7 percent, while those anticipating fewer jobs declined from 16.5 percent to 15.0 percent," according to its statement.