The Olympian reports while the Consumer Confidence Index of The Conference Board increased for the first time in five months, from 62.7 in June to 65.9 this month, the index is well below 90, which indicates a healthy economy, a mark not seen since before the recession began in 2007. At its lowest point it dropped to 25.3 in Feb. of 2009. Based on a random survey of 500 respondents, consumer confidence matters because consumer spending accounts for 70 percent of U.S. economic activity. Lynn Franco, director of economic indicators at The Conference Board, says, “While consumers expressed greater optimism about short-term business and employment prospects, they have grown more pessimistic about their earnings. Given the current environment – in particular the weak labor market – consumer confidence is not likely to gain any significant momentum in the coming months.” MHProNews has learned the index remains at historically low levels.
(Image credit: TotalMortgage)