In a press release earlier this week, The Conference Board released the results of its April Consumer Confidence Index(TM). The Index, which had shown a slight increase one month ago, rose from 26.9 in March to 39.2 in April. This is the highest level reached in 2009 and was a higher jump than many economists had anticipated. Click here to read the full press release.
While consumer confidence is still off from "growth market" levels, the sharp increase could be a great sign that we're not far off from a recovery. Much of this recession seems to be psychological, more so than in previous recessions. Part of the psychology could be the unprecedented number of individuals with money in the market in the form of 401(k)'s or other retirement vehicles. Another contributor could be the volume of financial news networks and mediums pumping negative news everywhere you turn. We need some good news!
If consumer confidence continues to rise, that could mean additional spending by consumers leading to additional spending by businesses. It will be interesting to see how economists view the bump in confidence and whether that will lead to better opportunities to close bank financing for new corporate finance deals.
While consumer confidence is still off from "growth market" levels, the sharp increase could be a great sign that we're not far off from a recovery. Much of this recession seems to be psychological, more so than in previous recessions. Part of the psychology could be the unprecedented number of individuals with money in the market in the form of 401(k)'s or other retirement vehicles. Another contributor could be the volume of financial news networks and mediums pumping negative news everywhere you turn. We need some good news!
If consumer confidence continues to rise, that could mean additional spending by consumers leading to additional spending by businesses. It will be interesting to see how economists view the bump in confidence and whether that will lead to better opportunities to close bank financing for new corporate finance deals.
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