Confidence versus Happiness versus the Economy
There’s been quite a bit of talk about consumer confidence recently. Just today, the Thomson Reuters/University of Michigan survey of U.S. consumer confidence showed a move from 74.3 in August to 78.3 in September. Earlier in the week, the Conference Board Consumer Confidence Index posted at 70.3, up from August’s reading of 61.3. Surveys like these are seen as leading indicators for economic conditions. It’s sort of a demand-driven idea; the more positive consumers are about the economic prospects of the country, the more willing they will be to spend money on appliances, cars, houses, you name it. So, positive sentiment can presage an economic expansion. But what does that positive economic growth give back to consumers?
