U.S. Consumer Sentiment Rises More Than Forecast on Signs Recession Easing

[Purveyor]

Source: Bloomberg

By Courtney Schlisserman

April 17 (Bloomberg) -- Confidence among U.S. consumers improved in April for a second month amid signs the longest recession in the postwar era may be easing.

The Reuters/University of Michigan preliminary index of consumer sentiment rose to 61.9, the highest since September, from 57.3 in March. The reading on expectations for six months from now improved. The index reached a three-decade low of 55.3 in November.

Recent reports indicate housing and manufacturing, two of the hardest-hit areas, may be stabilizing, supporting Federal Reserve Chairman Ben S. Bernanke’s view that the U.S.’s “sharp decline” could be slowing. An improvement in confidence may help sustain a recovery in consumer spending, which accounts for 70 percent of the economy.

“We definitely appear to have bottomed out and may be stabilizing,” Michael Gregory, a senior economist at BMO Capital Markets in Toronto, said before the report. “As long as things aren’t getting any worse you get a little bit of a lift to confidence.”

Economists forecast the sentiment index would rise to 58.5, according to the median of 63 projections in a Bloomberg News survey. Estimates ranged from 55 to 62.9.

“The economy is still weak but it’s not declining at quite the rapid pace it was,” said David Sloan, senior economist at 4Cast Inc. in New York, who had projected sentiment would reach 61, the second-closest forecast in the Bloomberg News survey. “We should probably see the report as a sign people are getting a little less pessimistic, and that’s the message we’re getting from a number of recent indicators.”

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=a007FgIxzK8Q&refer=home

[bluestateguy]

1. Yes, we've gone from depression to severe recession

So I guess that is progress.

[county worker]

Please what ever you do, don't believe this story. Some DUer or other

has statistical proof from some place or other that proves these consumers should not have confidence in the economy.

According to the DUer we are in for a long depression, the country is going to crash and burn and we are too stupid if we think otherwise.

[Renew Deal]

3. Everybody has an agenda.

And yours is to make people believe that people shouldn't feel confident. The point is that people feel more confident, not that they feel more confident but shouldn't.

[county worker]

4. I must have forgotten the sarcasm smiley

[Renew Deal]

5. Oh

;)

[Purveyor]

6. Excuse me? I go out of my way to post all economically positive articles on this forum

only to be treated with taunts and sarcasm about how bad things 'really are'.

I need not be lectured on the condition of this economy as I sit smack-dab in the middle of the state is this country that reports the highest unemployment rate and loss of jobs.

Indeed, when I find something positive to report I'm going to post it and to those not comfortable with that, I would should you utilize the 'ignore' feature on this forum.

[Renew Deal]

7. My comment wasn't to you.

:shrug:

[WI_DEM]

2. I truly thnk that a lot of this rising confidence has to do with confidence in President Obama

People may not agree with all he has done, but they think he is working hard and willing to try different things. If one thing doesn't work he'll try another. Just like FDR did. They also, I think, just plain like him. He's a breath of fresh air after eight years of Bush.

[NeoConsSuck]

8. Translation:

Yay! It's 18 months into this recession, and I still haven't lost my job!