Today’s report on consumer confidence lends credence to economic forecasts that call for a recovery soon.
This is a big enough improvement in consumer attitudes that I’m confident it’s not just a temporary blip. Although consumer confidence isn’t the only thing to worry about, recall that the housing crash itself did not send us into recession; it was the collapse of consumer spending that pushed us over the edge. Now we’re likely to see an improvement–not a return to the exuberant spending of 2005, but a measured increase in spending.
— Bill Conerly is principal of Conerly Consulting LLC, chief economist of abcInvesting.com, and was previously Senior Vice President at First Interstate Bank. Bill Conerly writes up-to-date comments on the economy on his blog called “Businomics” and produces a monthly audio magazine available on CD. Conerly is author of “Businomics™: From the Headlines to Your Bottom Line: How to Profit in Any Economic Cycle”, which connects the dots between the economic news and business decisions.