Consumer confidence rose as the housing industry recovers. A report says the Bloomberg Consumer Comfort Index increased to minus 34.8 on Oct. 14, which is the highest level since April this year.
According to a report, the rising prices of properties have lifted the moods of consumers to spend more on housing. The gains in the stock market are also said to have helped improve consumers’ confidence in the economy, along with an increase in permits for home construction.
A data from the Commerce Department shows that Building permits, being one of the indicators that boosted the leading index, rose to the highest level since 2008.
Federal Reserve Bank of Philadelphia
The general economic index of the Federal Reserve Bank of Philadelphia also increased from minus 1.9 last month to 5.7 in October, which is seen to be a good sign that the industry is starting to become stable.
On a conference, chief financial officer of a New York marketing communications firm said that although the U.S. economy looks a bit choppy, it is still modestly moving to the right direction. Not only do the housing prices are improving, jobs are also improving a little, he added. These things, he said, are some indicators that marketers use to predict the behavior of consumers.
Jobless Rate Dropped
The jobless rate is also reported to drop in September, which explains why the comfort index has risen in seven of the past eight weeks. Moreover, since people’s confidence on the housing industry has improved due to the rising property prices, more people are expected to be back to work in the housing industry. This will definitely help improve the economy, experts say.