US Consumer Confidence Beats Expectations, Defies Recession Fears
US Consumer Confidence Jumps Beyond Expectations in September
The Consumer Confidence Index in the US rose above the expected value in September to 108.0 from 103.6 in August. This leads to an extension of a sentiment rebound that began last August raising confidence in the US economy.
US Consumers Defy Wall Street’s Recession Fears
The recent rise in the Consumer Confidence Index expressed the opinion that US consumers continue having growing confidence in the economy, which contradicts the recessionary fear on Wall Street. These fears were heightened just a week ago when the Federal Reserve increased its benchmark interest rate and expected to see rising unemployment.
Sentiment Improves for Labor Market and Business Conditions
The Conference Board confirmed on Tuesday that the increase in the Consumer Confidence Index for September was due to the improvements both in the current state of the labor market and business conditions.
With the data indicating strong and resilient consumer confidence, this may in turn sustain consumer spending.
Fed Likely to Continue Rate Hikes
The Federal Reserve, which has aimed to fight inflation by slowing down the economy, may view this data as a sign that it needs to continue with significant rate hikes. However, this approach also risks pushing the US economy into a downturn and could leave millions without work.
Story at abcnews.go.com
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