U.S. Consumer Confidence Hits 18-Year High Strong economy and robust job growth bolstered consumers’ sentimentBy Harriet Torry
https://www.wsj.com/articles/u-s-consumer-confidence-rose-in-september-1537885594?cx_testId=16&cx_testVariant=cx&cx_artPos=0&cx_tag=pop&cx_navSource=newsReel#cxrecs_s
Consumer confidence hit an 18-year high in September, a positive indicator for spending going into the holiday shopping season, as robust job growth and a strong economic outlook bolstered Americans’ expectations for the future.
The Conference Board, a private research group, said Tuesday its index of consumer confidence rose to 138.4, up from 134.7 in August—the highest level since September 2000, which represented the late stages of the 1990s technology boom. An index reading of 100 represents how households saw the economy in 1985.
The report came on the heels of a separate University of Michigan survey that said sentiment jumped in early September to the second-highest level since 2004—behind only the reading in March of this year.
Economists have voiced concerns about trade and tariffs as risks to economic growth over the next 12 months. For consumers, however, the issue isn’t registering.
“We are kind of in a little bit of a Goldilocks moment in the economy. I think things are really strong for the consumer,” said David Jaffe, chief executive of Ascena Retail Group Inc., during an earnings call this week. The company, one of the largest women’s clothing retailers with brands like Dressbarn and Ann Taylor, reported its first positive quarter of overall comparable-stores sales growth in more than three years Monday.
“The tariffs, while it’s not going to impact apparel very much, haven’t really hit yet. We’ve seen unemployment go down. What we’re seeing, I think, is maybe a little bit of a rebound due to a lack of shopping for apparel over the last couple of years,” Mr. Jaffe said.
Lofty consumer sentiment bodes well for economic growth in the third quarter, now in its final week. Forecasting firm Macroeconomic Advisers on Friday estimated gross domestic product expanded at a 3.3% annual pace in the current quarter. The Federal Reserve Bank of Atlanta’s GDPNow model most recently predicted a 4.4% growth rate.
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