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Consumer Confidence Rises Higher Than Expected

Consumer Confidence Rises Higher Than Expected

The Obama Administration will point to some new economic indicators and say things are getting better, but the analysts don’t necessarily see it that way.

Consumer confidence was stronger than expected. It was at 81.5, which is two points higher than many were expecting. Financial planner Richard Rosso explains why this is happening.

“People are a little bit more confident that the job they have right now is going to stick around a little bit,” Rosso said.

But does that mean the economy is getting better? Does it mean we're confident enough to buy some big ticket items?

“Once the confidence levels hit 95 and above, then you see some effect on actual spending,” Rosso explained. “It’s not where it was during the bull market of the 1990’s.”

But for now, Rosso says we're just muddling along.

“People are semi-confident, but they always have a skeptical eye. I think people are just dealing with things right now,” Rosso explained. “You’ve accepted this normal. Companies are still cutting back hours and resources. You probably haven’t seen a wage increase in a long time.”

And Wall Street isn’t doing cartwheels over the new numbers.

“You have news of Syria that is overwhelming the market temporarily. I think the number gets passed over by Wall Street,” Rosso said.

And although yesterday's number was better than expected, we are still nowhere near where we were before the Great Recession of 2008.

 

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