U.S. Consumer Sentiment Rises More Than Forecast as Pace of Job Cuts Slows

[Purveyor]

Source: Bloomberg

By Courtney Schlisserman

Sept. 11 (Bloomberg) -- Confidence among U.S. consumers rose more than forecast in September as the pace of job losses slowed and the economy showed signs of pulling out of the recession.

The Reuters/University of Michigan preliminary index of consumer sentiment increased to 70.2 this month from 65.7 in August. The index was forecast to rise to 67.5, according to a Bloomberg survey of economists.

Americans are starting to grow more upbeat after suffering the biggest destruction of wealth on record from a slump in stocks and home prices. Consumers may still be wary of increasing the spending that makes up 70 percent of the economy as they focus on building savings and paying debt.

“We can be encouraged that consumer sentiment is healing,” said Jonathan Basile, an economist at Credit Suisse Holdings USA Inc. in New York. “Good news continues to come through, bad news continues to diminish. It’s better, but it’s not good yet.”

The University of Michigan measure of current conditions, which reflects Americans’ perceptions of their financial situation and whether it is a good time to buy big-ticket items like cars and homes, rose to 71.8 from 66.6.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=ahLZmGpfoxgI

[progressivebydesign]

1. I was reading an article about the level of job loss, as it's out of character with a recovery.

Unfortunately, the economic models of past downturns in relation to job loss and creation, does not take into account the corporate heartless jerks who continue to shed jobs so they can give some poo schmuck in India or China the jobs. That's what makes this economy and recovery so troublesome. In a NORMAL setting, the jobs would correlate with improving conditions. But we have the return to investors driving every decision, and the jobs keep going away... heading offshore or just being covered by the beleaguered employees who remain.

Sadly, the corporate CEOs are so organically greedy (which makes them stupid), so they never figured out what I've been saying all along. You keep sending our jobs overseas, who the hell is going to have a job to buy your Chinese-made crap? Someone has to have a job to buy those Fire-Me Elmo dolls.

[Ghost Dog]

2. The survey may reflect little more than the current media spin:

"Confidence rebounded in early September as consumers increasingly expected the economy to improve despite their reluctant conclusion that their own financial situation would remain quite problematic for some time," the Reuters/University of Michigan Surveys of Consumers said in a statement.

/... http://uk.reuters.com/article/idUKTRE58A3GJ20090911

[Robbien]

3. Sure does seem they are being swayed by the hype

Their own situation may be rotten but the TV keeps telling them that things are getting better for other folk.