… the American consumer feels better now about their financial prospects than they’ve felt in 5 years.
San Francisco, CA (PRWEB) November 05, 2012
The stars may not always align, but it appears that consumer opinion polls have aligned for the month of October. Results from the Gallup Poll, the Pew Research Center, and the University of Michigan and Thomson Reuters Surveys of Consumers data, all point to increasing consumer confidence in the U.S.
Ina recent Gallup Poll, consumers reported that they feel better off financially versus 12 months ago. This is the first time in 5 years that consumer’s outlook has improved on a year over year basis. Those feeling better off rose from 29 percent in January to 38 percent in the October poll. Even more telling is the number of respondents who no longer feel worse off than a year ago. That number dropped from 49 percent in January to 34 percent in October.
Data from the Surveys of Consumers also show that the American consumer feels better now about their financial prospects than they’ve felt in 5 years. That being said, the confidence is tinged by worries that things will turn for the worse, as well as a general uneasiness regarding the broader economy.
“This is the typical pattern we see at the first stage of the recovery,” said Richard Curtin, chief economist for the Surveys of Consumers, a monthly look at consumer sentiment. Curtin said the improving attitudes are being driven by two issues that hit closest to home: Housing and Employment.
The data from the Surveys of Consumers is in line with a report from the Pew Research Center, which showed Americans feel that they are hearing less bad news regarding the economy.
While it is too early to tell if people have permanently let go of their pessimism, it is a move in the right direction. These optimistic feelings have waited three years since the recession officially ended, and have been kept in check by the weakness of the current recovery.
The fact that the housing market appears to be stabilizing is one driving factor behind the renewed optimism. Combined with an unemployment rate that is below 8 percent for the first time in 3 years, many analysts feel that this could finally signal the turning point in consumer confidence. Optimism that drives consumer spending helps the economy. Small businesses have been hit hard by the economy and lack of capital. The Lending Circle, a division of Sunovis Financial, helps businesses with access to capital, from conventional loans to alternative options.
Still, concerns remain regarding other economic factors that may not be in the forefront of the American consumer’s mind. The European economy remains unstable, and that could weigh on U.S. growth prospects. More importantly, business in the U.S. is worried about the looming fiscal cliff, a series of automated tax increases and spending cuts that are scheduled to take effect if Congress doesn’t act.
About The Lending Circle
The Lending Circle, a division of Sunovis Financial, works to address the great pent-up need for financing nationwide, and will help borrowers with their needs whatever they may be.