Consumers are beginning to feel better about the U.S. economy. The Reuters/University of Michigan’s consumer sentiment index rose to 83.1 in September – the highest level since September 2007 – from 74.3 in August. Analysts had forecast a rise to 78.3.
The survey questions 500 households each month on their financial conditions and attitudes about the economy.
The consumer sentiment survey’s barometer of current economic conditions rose to 88.6 from 85.7 and was above a forecast of 86.
The index of consumer expectations for six months from now, reflecting more closely the direction of consumer spending, jumped to 79.5 from 73.5, above an expected reading of 74. Expectations were at their highest since July 2007.
Consumer confidence going forward will impact real estate. When people are more confident in their family's financial situation, they are more willing to enter the housing market.