US consumer confidence is at an 18 year high with an index of 138.4 in September up from 134.7 in August. The all-time high is 144.7 which was reach in 2000. This bodes well for the economy as consumer spending fuels most developed service-based economies, including the US representing approx. 70% of GDP.
Coupled by a strong economy and robust job growth, a high consumer confidence level of 138.4 in September proves a healthy economy and is great news for retail and the shopping center industry entering this holiday season.
Consumer confidence data is a very important leading indicator for investors. This metric gives investors the ability to predict consumer-spending patterns of which can be useful predictors of GDP growth and effectiveness of monetary policy in combating low unemployment and inflation.
The fact is when consumers are confident in their futures; they spend more money and drive economic growth higher. When consumers aren’t confident, they’d rather save than spend which could constrain economic growth.