U.S. consumer sentiment, published by University of Michigan survey every month, is at 100.8 – one of the highest number recorded in recent years, representative of a 6.0% year over year change. An index number of 100 represents the conditions in 1966 – the index’s baseline. This signals far better optimism of consumers in comparison to the sluggish gains recorded for the recovering years after the great recession.
Many tailwinds play into the current phenomenal, including a tight labor market and an increase in household income due to the tax-cut. Wages have seen upward pressure as the economy is experiencing full-employment at 3.9% while the labor market continues to provide more jobs than the number of people who are actively seeking.
Another highlight of the survey is that a slight majority of respondents expects the current expansion to continue uninterrupted over the next five years. Considering that we are already experiencing the longest bull markets in history, the prospect of having the longest period of economic growth would undoubtedly help businesses to continue investing in capital expenditure.
https://www.wsj.com/articles/u-s-consumer-sentiment-jumps-in-early-september-1536935921
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