Good news from The Conference Board Consumer Confidence Index®: the index rose sharply in January, to its highest level since August of 2007.
According to Lynn Franco, Director of Economic Indicators at The Conference Board, “Consumer confidence rose sharply in January, and is now at its highest level since August 2007 (Index, 105.6). A more positive assessment of current business and labor market conditions contributed to the improvement in consumers’ view of the present situation. Consumers also expressed a considerably higher degree of optimism regarding the short-term outlook for the economy and labor market, as well as their earnings.”
That’s good news for the real estate market because a strong consumer confidence report can make investors more willing to part with their hard earned cash. Just think about it: a happy consumer who feels that his or her standard of living is increasing is more likely to spend more and make bigger purchases, like a new home.
The CCI is a monthly report from the Conference Board, a non-profit business group that is highly regarded by investors and the Federal Reserve. The CCI offers a unique indicator of the country’s financial health, formed from survey results of more than 5,000 households and designed to gauge the spending power and confidence of the average consumer.
Last month, 28.1% of those interviewed said business was good, while those claiming business conditions are “bad” fell to 16.8%. When it came to the job market, consumers were also very positive with 20.5% of those interviewed saying the job market is plentiful. The number of those claiming jobs are “hard to get” decreased to 25.7%. The proportion of consumers expecting growth in their incomes improved too, from 16.2 percent to 20.0 percent.
This report shows that Americans are very optimistic about our economy today. In fact, they are the most optimistic that they’ve been since February 2011 about the state of our business conditions during the next six months. In the final analysis, the happiness and spending ability of consumers is the most important indication of a healthy economy and the perfect time to sell real estate.
Thinking about moving to one of the Napa Valley or Sonoma Valley communities? I’m here to help. Please call me at 707-738-4820 or email me at [email protected] and I can lead you to the best listings in the area. Now is the time to act, with the Consumer Confidence Index in such a positive place!
