The numbers: Consumer confidence rebounded in September to high levels after the pandemic as the number of coronavirus cases declined and economic growth slowed, according to a closely monitored survey.
The consumer confidence index rose to 101.8 this month from 86.3 in August, the conference council said Tuesday. Economists surveyed by MarketWatch had predicted that the index would rise to 89.6.
The confidence level in August was also revised slightly higher after the initial appearance of the lowest reading since the pandemic began more than six months ago.
What happened: An indicator that measures consumer sentiment for the economy at the moment rose to 98.5 in September from 85.8 last month.
Another indicator that measures how Americans view the next six months – the so-called future expectations index – has risen to 104 from 86.6.
The recovery of confidence almost certainly reflects the decline in cases of Qur’anic viruses following a rise in the summer.
Perhaps most surprisingly, the reduction in federal benefits for the unemployed did nothing to dampen optimism. A federal unemployment rate of $ 600 expired at the end of July. President Trump has approved $ 300 interim payments, but the money is already running out and Congress is deadlocked about what to do next.
Big picture: The rise in consumer confidence after two consecutive declines is welcome news, indicating that the US recovery is still on track even though growth has slowed since late spring. Although millions of Americans remain out of work, more people are returning to work and the unemployment rate is falling.
Economists worry that the end of federal aid will slow the recovery and make it difficult to return to normal, but so far the US has continued to get ahead.
What they say; “A more favorable picture of current business and labor market conditions, coupled with renewed optimism about the short-term outlook, has helped boost this month’s recovery,” said Lynn Franco, chief financial officer at the board.
Market reaction: Dow Jones Industrial Average DJIA,
and S&P 500 SPX index,
declined slightly in Tuesday’s trading ahead of the first presidential debate.