Index: Consumer confidence returning

05.02.09
By Timothy Jones

Americans may still have a bevy of recession-related concerns, from paying off credit card debt to making home loan payments on time, but their attitude seems to be brightening.

The Reuters/University of Michigan index of consumer sentiment rose during March from 57.3 to 65.1. Not only does this increase reflect a trend over the past few months, but it is the largest jump seen in over two years.

Meanwhile, the measure of consumers' expectations also went up between February and March, from 53.5 to 63.1. Analysts usually look at this figure as an indicator of how willing people are to spend money.

Experts suggest there are a number of factors which may be improving Americans' view on the economy, ranging from the passage of President Obama's stimulus package to an improving stock market and lower prices on consumer goods.

"Consumers are noting the better financial-market conditions and that's removing some of the panic that had ensued last fall," Dean Maki of Barclays Capital told Bloomberg. "Consumers are becoming less anxious and therefore a bit more willing to spend."

Still, some predict unemployment could still continue to rise in the months ahead, meaning the pressure on American families may not ease anytime soon.

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Consumers' attitudes seem to be brightening