Study sees rise in consumer confidence
A preliminary consumer confidence study by the University of Michigan found consumer confidence is likely to increase in November, just in time for the holidays.
Researchers expect U.S. consumer confidence will rise to a five-month high for November, just in time for holiday shopping. The report cited a decline in consumer credit debt, as one of the reasons for the shift in public opinion.
Revolving credit, the kind typically reserved for monthly credit card payments, declined for the 25th straight month in September, its biggest drop in almost a year. Other factors contributing to the potential rise were increased expectations of industries and a recent gain of 151,000 jobs in October, the Financial Times reports.
The report also found expectations for short-term inflation increased slightly from 2.7 to 3 percent, the news source says. The Federal Reserve’s recently announced quantitative easing program was seen as the reason for the upswing.
Despite the rise, overall consumer confidence remains at its lowest level since the economic downturn of 2008.