Americans’ confidence in the economy rose in April to the highest level since September 2008, just as the financial crisis escalated, according to a private research group, The Associated Press Reports.
The upbeat reading, combined with bullish earnings reports this week from companies ranging from Whirlpool Corp. to UPS Inc., offers more hope the economic recovery is gathering steam.
The Conference Board, a private research group based in New York, said Tuesday that its Consumer Confidence index increased to 57.9, up from a revised 52.3 in March. The April reading is the highest since September 2008’s 61.4. That was when the financial crisis intensified with the collapse of Lehman Brothers, sending confidence into freefall the following month. Economists surveyed by Thomson Reuters were expecting a reading of 53.5.
The index — which measures how shoppers feel about business conditions, the job market and the next six months — had been recovering fitfully since hitting an all-time low of 25.3 in February 2009.
Economists watch the number closely because consumer spending including health care and other major items, accounts for about 70 percent of U.S. economic activity.
April’s reading is still far from what’s considered healthy. A reading above 90 indicates the economy is on solid footing; above 100 signals strong growth. Still, the monthly survey of consumers showed that consumers’ current and short-term concerns about jobs and the overall economy are easing.
