Contact Us
Make My Homepage

Consumer confidence is on the rise

Consumers in the Garden State and across the country are feeling more confident about the economy than they have in a long time.

(Andrew Burton, Getty Images)

The Conference Board’s Consumer Confidence Index is up to 90.9 this month, the highest reading since October of 2007, and robust job creation is a major reason why.

Ken Goldstein, an economist with the Conference Board, said what’s happening is “more people going to work, so obviously there are more paychecks.”

“People feel as if this is either going to continue or actually even get a little better over the next few months, so people spend money, so business has to produce more because people are buying more, they also then have to invest more and have to go out and hire more,” Goldstein said.

He said this appears to be a different kind of momentum, unlike 2013 or 2012.

“What’s going on here right now is improvement in the labor market,” he said. “And because people are getting new jobs they need a place to stay, so it’s also feeding the housing market. Both are leading to more consumption, more investment, and still more hiring.”

He said people who bought a new car recently, because the old one wouldn’t run anymore, are finally starting to replace some old furniture and appliances as well, “so that’s going to kick the economy above its long-term potential.”

Goldstein said one key moving forward will be how good the back-to-school sales turn out to be in August.

“That’s going to be a marker,” he said. “Not only about if consumers are willing to spend money, but whether that can be sustained right into the holiday period. If we continue to see improvement in confidence, we could see another 10, another 20-point move, not next month but over the next few months.”

He also said this trend suggests “consumers are feeling not only that the economy is better, but that this time it’s for real, this time they can count on it, bank on it, spend on it.”

Best of NJ101.5

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for New Jersey Insiders quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive New Jersey Insiders contests, events, coupons, presales, and much more delivered to you for FREE.