Surveys Report Good Economic Signs
Maybe the worst part of the recession is over.
At least, that’s the word from a few economic indicators recently released that found consumers are showing more faith in the economy and intend to increase spending.
Overall, retail sales increased 1.6 percent the week ending June 27, according to the International Council of Shopping Centers. It was the strongest increase in spending since the week ending Jan. 31. ICSC chief economist Michael Niemira said late June’s warmer summer weather encouraged consumers to start spending.
Consumers’ shopping mood could continue over the Fourth of July weekend, according to the National Retail Federation. More Americans plan to celebrate the Fourth of July this year compared with 2008, according to the NRF’s “2009 Independence Day Consumer Intentions and Actions Survey,” which was released June 22.
Independence Day falls on Saturday this year, and more than 62.6 percent of Americans, or 144 million people, said they will attend a Fourth of July picnic or cookout, compared with 61.2 percent, or 139 million, in 2008, according to the poll, which was taken by NRF partner Big Research.
And consumer confidence is coming back, according to the consumer sentiment index charted by a Reuters/University of Michigan survey, which was released June 26. It increased to 70.8 percent in late June, compared with 68.7 percent in May.
But not all reports are so bullish.
The Conference Board, a New York–based economic group, found a more downbeat mood in its sentiment index, which was released on June 30. Its index decreased to 49.3 in June from 54.8 in May. The index’s 2009 nadir was in February when the organization reported a sentiment index of 25.3. A Conference Board economist said June’s index reflects consumers’ anxiety over rising energy costs and the weak labor market. —Andrew Asch
