US consumer confidence in September
The US Conference Board Consumer Confidence Index gave a strong performance in September 2016. It was at 104.1 compared to 101.8 in August 2016. However, the figure beat market expectations of 98.6. The improvements in both August and September indicate consumer optimism is on the rise.
This index gets information from surveys across the United States (QQQ) (SPXL) (IVV) about what consumers buy and their sentiments about products and services, the economic outlook, and the labor market.
Where did the index see positive movement?
The index remained strong in September, showing improvement in consumer sentiment. Expectations about the business climate, personal income, and labor market conditions improved sharply as compared to August.
However, sentiments about the current business environment were weaker. Business investments fell slightly compared to market expectations, which is causing some concerns. On the other hand, consumer spending was on the rise.
The uncertainty about the economy (VFINX) (VOO) is increasing ahead of the US presidential election. US companies aren’t increasing their capital expenditure due to uncertainty about major policy changes. After the election, we could see some changes in US business investment.
In the next part of this series, we’ll analyze Japan’s retail sales in August 2016.