Gain for Highest Earners Helps Bolster U.S. Consumer Confidence
Confidence among U.S. consumers was little changed last week as gains for top earners helped overcome growing pessimism at the other end of the income scale.
The Bloomberg Consumer Comfort Index was at minus 34 in the period ended April 7 compared with minus 34.1 the prior week. Those earning more than $100,000 were the most optimistic since late 2010, while households earning less than $15,000 were the most pessimistic in three months.
Record stock prices and the rebound in housing may be helping support sentiment for the more well-off Americans. Conversely, the increase in the payroll tax and higher gasoline prices at the start of the year, combined with a slowdown in hiring, may be taking a toll on those of more modest means and the unemployed, indicating growth will cool.
“Consumer sentiment, like the U.S. economy in the current quarter, continues to move sideways, as lower-income cohorts show signs of strain,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “Investors should expect the risk of further deterioration in overall sentiment as the impact of sequestration takes hold in coming weeks.”
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http://www.bloomberg.com/news/2013-04-11/gain-for-highest-earners-helps-bolster-u-s-consumer-confidence.html
