Economy

Consumer Confidence Nearing Five Year High

Good news -- consumer confidence ticked upward to its highest level in almost five years during the month of October.

Confidence among American consumers climbed in October to a more than four-year high, which may help drive bigger gains in the largest part of the economy.

The Conference Board’s sentiment index increased to 72.2, the highest since February 2008, from a revised 68.4 in September, figures from the New York-based private research group showed today. The figure was projected to rise to 73, according to the median estimate of economists surveyed by Bloomberg. [...]

The Conference Board’s measure of present conditions increased to 56.2 from 48.7 in September. The measure of expectations for the next six months increased to 82.9 from 81.5. Estimates for the Conference Board gauge ranged from 65 to 76, according to a survey of 79 economists.

Not only are Americans growing more content with the current state of the economy, they're also becoming more optimistic about the future.

In simpler times we wouldn't hang on the consumer confidence index, but a lack of demand has hampered economic recovery and an uptick in consumer confidence will likely lead to an increase in demand.

If current estimates hold up, confidence will reach levels not seen since 2007 in the coming months.