GOOD ECONOMIC NEWS … FOR A CHANGE
Some good economic news this week as consumer comfort in America enjoyed its biggest two-week uptick in more than seven years.
After an ominous report two weeks ago, Bloomberg’s Consumer Comfort Index (CCI) shot up 1.7 points from a week ago – and is now up 3.5 points in the last two weeks alone.
For those of you not hip to this economic indicator, the CCI is based on three subindices: Americans’ ratings of the national economy, their personal finances and the buying climate. The broader index – and each of its three subindices – range from zero (bad) to 100 (good).
This week’s reading (.pdf) clocked in at 45.3 – equaling its post-recessionary peak.
Here’s a look at the trendline …
(Click to enlarge)
(Chart via Bloomberg)
Analysts at Langer Research Associates described the recent upticks as “a potential breakthrough for consumer sentiment in what’s been a largely flat year.”
Let’s hope they’re correct …
As we noted last week, we like good economic news – and we don’t really care who takes the credit for it!
We especially welcome upticks in consumer comfort, because they often lead to enhanced consumer activity – which can in turn lead to job growth and income expansion.
Do we really think that’s what is on tap for the broader U.S. economy, though?
No. Our view is that this two-week increase represents a solitary aberrant spike in the data.